LONDON: German 10-year bond yields rose on Monday to their highest level since Britain's vote to leave the European Union, as hawkish comments from U.S. Federal Reserve Chair Janet Yellen was seen leaving the door open for a rate hike as early as next month.
Speaking at the annual gathering of central bankers in Jackson Hole, Wyoming on Friday, Yellen said the case for a U.S. interest rate rise has strengthened in recent months because of improvements in the labour market and expectations of solid economic growth.
She did not indicate when the U.S. central bank might raise rates, and euro zone bond yields closed lower on Friday.
However, a sell-off in U.S. Treasuries as investors interpreted the comments as hawkish weighed on sentiment in European markets early on Monday.
The German Bund future was down 75 ticks at 166.94.
The 10-year Bund yield rose more than 6 basis points to minus 0.025 percent, the highest level since June 24 when the result of Britain's EU referendum sent shockwaves through markets.
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