ECB's Rehn: AI Infrastructure Debt Is Already Doing the Tightening

ECB official Olli Rehn said rising eurozone bond yields, driven partly by AI infrastructure debt issuance, are already tightening financial conditions ahead of the October 29 rate decision. Germany's 10-year Bund yield hit ~3.57%, its highest since 2009, while eurozone inflation reached 3.2% in August 2026.

• 10-year Bund yield climbed to ~3.57%, highest since 2009
• Eurozone inflation hit 3.2% in August 2026, energy at 14.3%
• AI firms are on track to issue about $500 billion in bonds in 2026
• Markets price a 60% chance of an ECB hike on October 29