Eurozone bond yields surge; French-German spread hits 2012 high on oil-driven inflation

European government bond yields rose sharply, tracking global fixed-income selloff, as elevated oil prices stoke inflation and reinforce expectations of ECB rate hikes. The French-German 10-year yield spread widened to levels not seen since the 2012 euro crisis, signaling renewed fiscal stress in France relative to Germany. The move reflects market pricing of tighter monetary policy and heightened sovereign risk, though the sustainability of the spread widening depends on ECB actions and oil price trajectory.