Germany’s 10-year Bund yield edged up to 3.36% on Monday, moving closer to a more than 15-year high of 3.3951% touched last week, as investors remained cautious following the far-right AfD’s strong victory in Saxony-Anhalt and ahead of this week’s ECB meeting. The AfD won 44% of the vote, falling short of an overall majority but dealing a major blow to Chancellor Friedrich Merz’s conservatives. Meanwhile, Brent crude moved closer to seven-week highs after the US struck three Iranian oil tankers over the weekend, destroying one, while Tehran threatened a new restricted zone outside the Strait of Hormuz. Higher energy prices have fueled a global bond selloff, with German borrowing costs rising for a fourth straight week as inflation pressures and resilient growth keep central banks under pressure to tighten policy. The ECB is expected to raise rates on Thursday, with markets pricing around a 90% chance of another hike by year-end.