Euro zone government bonds fall on way to historically bad year

The sell-off in bonds caps a brutal year for European government debt, which has been hammered by rapid interest rate hikes from the ECB and Federal Reserve.

The yield on the German 10s, seen as a benchmark for the euro zone, had risen more than 260 bps this year as of Friday. Photographer: Alex Kraus

Euro zone government bonds fell on Friday, the final trading session of 2022, topping off an historically bad year for European sovereign debt.

The yield on Germany's 10-year government bond was up 4 basis points (bps) to 2.506%, after slipping 4 bps in the previous session. Yields move inversely to prices.