Euro zone bond yields jumped on Tuesday and markets were pricing in three interest rate rises by the European Central Bank this year as hopes faded for a peace deal in the U.S.-Iran war. U.S. President Donald Trump said the ceasefire with Iran was "on life support" after Tehran rejected a U.S. proposal to end the conflict and stuck to a list of demands that Trump has described as "garbage".
Germany's 2-year yield, which is regarded as more sensitive to rate expectations, rose 6.3 basis points to 2.7085%.
