Germany's 10-year bond yield rose above 0% for the first time since May 2019 on Wednesday, as expectations for tighter central banks policies continue to drive borrowing costs higher.

By 0708 GMT the 10-year bond yield, considered a benchmark for the whole euro zone, was up 2 basis points on the day at 0.006%.

Bund yields have risen as euro zone bond markets have sold off heavily in recent weeks with investors betting the US Federal Reserve could hike rates as early as March, earlier than previously expected.

They are up over 30 bps since the start of December.

Rate-hike path pushes euro zone bond yields higher in choppy market

Unease as the European Central Bank plans to end its pandemic emergency bond purchases in March has also put upward pressure on bond yields.