German treasury bond yields broke through 1% for the first time since 2015

Investors are actively selling bonds, expecting a rate hike from the ECB. Today another disappointing data on industrial inflation in Europe came out - producer inflation rose to 36%.

Treasury bond yields are the benchmark for the EU. Rising bond yields are impacted by rising lending rates in Europe, as lending rates rise ahead of the central bank's key rate.

"The market is in dire straits, and few investors are willing to take the other side given the entrenched bearish dynamics," said Christoph Rieger, head of fixed-rate strategy at Commerzbank AG.