[Germany is set to pay the highest yield since 2010 for the issuance of 10-year government bonds] September 9th, Germany’s 10-year government bond borrowing costs are set to reach the highest level since at least 2010, with investors demanding higher compensation for continued high inflation and growing political uncertainty. The country's finance ministry will put out a tender on Wednesday for 5.5 billion euros ($6.4 billion) of bonds due in August 2036. The yield on outstanding 10-year Treasury notes is hovering around 3.38%, which would be the most expensive issuance of a bond of this maturity in at least 16 years. German bund yields have risen sharply over the past few weeks amid a global sell-off. Investors are likely to demand a higher uncertainty premium in the coming months after Chancellor Friedrich Merz's ruling party suffered a crushing defeat in local elections. The 10-year Treasury yield hit a 15-year high earlier this week as rising tensions in the Middle East sent energy prices higher.