German 10-year bund yields hit highest this year following heavy sell-off in global debt market

The German 10-year bund yields hit highest this year on Monday following heavy sell-off in the global debt market.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 4-1/2 basis points to 0.350 percent (highest in 2016), the yield on long-term 30-year note jumped 6 basis points to 1 percent and the yield on short-term 3-year bond climbed 2-1/2 basis points to -0.554 percent by 08:40 GMT.

The German bunds have been closely following developments in the U.S. debt market. The United States benchmark 10-year Treasury yield bounced 12 basis points to 2.237 percent for the first time in 2016.

A heavy sell-off in government bonds was supported by rising expectations that the U.S. President-elect Donald Trump's policies, such as fiscal expansion and protectionism on international trade, could support growth and inflation.

Last week, the United States Republican candidate Donald Trump pinned his victory against Democrat opponent Hillary Clinton in the 2016 presidential election. Investors again revised the outlook for US interest rates after Donald Trump's victory, with the probability of a December rate hike by the Federal Reserve going from as low as 30 percent to as high as 84 percent.

Also, the fall in the number of people opting for unemployment benefits in the United States has strengthened the probability of a December interest rate hike by the Federal Reserve.

Lastly, investors remain keen to focus on the upcoming German Q3 GDP, Eurozone Q3 CPI, Eurozone CPI, German PPI followed by ECB President Mario Draghi and German Bundesbank President Jens Weidmann speech.

Meanwhile, the German stock index DAX Index traded 1.02 percent higher at 10,778.50 by 08:50 GMT. While at 08:00 GMT, the FxWirePro's Hourly Euro Strength Index stood neutral at -44.47 (lower than -75 represents bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex