LONDON—-Germany’s 10-year bond yield lurched closer to positive territory on Thursday, just as borrowing costs across the euro area hit new highs in the face of a hawkish tone from the U.S. Federal Reserve and fresh signs of high German inflation. Italy’s 10-year bond yield was 4 basis points higher on the day at 1.28 percent, having jumped to its highest level since July 2020 at almost 1.32 percent. Most other 10-year euro area bond yields were up 3–4 bps on the day and at or near multi-month highs, reflecting a broader sell-off in bond markets led by U.S. Treasuries. In Germany, the yield on 10-year Bunds, which rolled over into a new benchmark, rose to -0.031 percent, its highest level since May 2019, according to Refinitiv data. Analysts said that while the rollover into a new contract made the move in Bund yields appear large, even if measured on …