Two-year U.S. Treasury yields rose above 3.5% to their highest level in around 15 years on Wednesday as selling gripped government bond markets again following data showing euro zone inflation at a fresh record high.

The 2-year U.S. Treasury yield rose to as high as 3.5010% to its highest level since late 2007.

The 10-year yield jumped to 3.164%, its highest level since late June.

Bond yields move inversely with prices.

German bond yields jumped after euro zone inflation rose to a record 9.1% in August, beating expectations and solidifying the case for further big European Central Bank rate hikes.

 

(Reporting by Dhara Ranasinghe and Samuel Indyk)