Euro zone bond rout pauses with yields at multi-year highs

Euro zone borrowing costs hit multi-year highs on Wednesday before steadying, part of a pause in the global selloff, with local bonds also helped by European Central Bank policymakers' suggestions that the interest rate hiking cycle is complete. The German 10-year yield, the euro area's benchmark, surged to 3.024% in early trading, the first time it had risen above 3% since July 2011, and was last at 2.94% down about 1 basis point on the day. A growing sense that interest rates in major economies will stay higher for longer to contain inflation, resilient U.S. economic data, rising supply and a sharp unwinding of traders' positions for a bond rally have been driving yields higher, a move that has accelerated in recent sessions.