Germany's bond shock goes way beyond Europe.

Hello, you're listening to the Marketplace Morning Report, and we're live from the BBC World Service.

I'm Leanna Byrne. Good morning.

Global bond sell-off is rattling markets, and it's being driven by Germany's plans to change its fiscal rules.

The yield on Germany's 10-year bond saw its steepest rise in nearly 30 years,

while French and Italian bond yields also surged.

Meanwhile, new US tariffs have pushed American yields higher as well.

Let's get the details from Simon French,

chief economist and head of research at Investment Bank, Penure Liberium.

Hello.

Hello, Leanna.

Simon, what is behind this global bonds sell-off?

Well, there's a lot of factors.

The two major ones that have rattled bond investors in recent days are Germany is in effect

rewriting it fiscal rules, its spending rules in real time.

And the market is anticipating a lot

more borrowing from the Eurozone's biggest economy. And that has pushed up yields disproportionately

in both Germany and the wider Eurozone. And then, of course, there's the constant stream of

political and indeed economic commentary coming out to the White House, moving US

yields higher on the expectation of higher inflation because of tariffs being levied not just

unilaterally by the United States, but retaliatory tariffs from both China and Canada

and other trade partners. And then of course, if bond yields continue to rise,

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