Brussels is worried as inflation and rising gas costs fuel concerns of a Eurozone disaster.

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Brussels is worried as inflation and rising gas costs fuel concerns of a Eurozone disaster.

Finance ministers from across Europe, alarmed by growing inflation and energy prices, will meet for an emergency summit today.

The EU’s finance ministers have never met to discuss day-to-day matters like the increase in taxpayers’ costs. The action reflects widespread fears about the coming winter in the EU, as well as rising inflation and the effects it will have on member states’ budgets.

By October 15, Eurozone governments will have submitted their states’ budgets to the EU, placing pressure on Brussels to find a quick and unified answer.

Unease that increasing inflation could lead central banks to withdraw substantial monetary stimulus sooner rather than later weighed on bond investors’ attitude on Monday, pushing borrowing costs higher across the euro region.

In September, ten-year government bond rates in Germany, France, and the Netherlands surged over 20 basis points as signals of higher-than-expected inflation and a hawkish tilt from the US Federal Reserve and the Bank of England rocked bond markets.

While bond yields have stabilized, the overall picture remains negative, with oil prices lingering around $80 a barrel and European gas prices hitting fresh highs on Monday.

Despite consumer pressure to calm a hot market, the Organization of Petroleum Exporting Countries and its partners are likely to stick to their existing deal to pump 400,000 barrels per day of oil to the market in November, sources said on Monday.

According to ECB vice-president Luis de Guindos, the recent rise in eurozone inflation has been a structural driver in supply disruptions, and the European Central Bank must keep an eye out for any signs of wage hikes.

Rene Albrecht, a rates strategist at DZ Bank, said, “It feels like inflation fears are a major worry right now, and we see that in equities as well.”

“We can call it stagflation,” says Boris Johnson of the Conservative Party, “where you have higher prices and weaker growth, and maybe the markets are playing that tune today.”

The 10-year Bund yield in Germany was almost 1 basis point higher on the day, at -0.21 percent, close to three-month highs reached last week at roughly -0.17 percent.

Italian government bonds underperformed, with 10-year rates rising 2.5 basis points to 0.84 percent, near recent highs.

According to experts. “Brinkwire News Summary.”

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