LONDON, July 6 Reuters Germany39;s twoyear bond yield jumped to its highest level in 15 years on Thursday, rising back above the peak it hit in March before jitters in the banking system rocked global markets.

The new milestone was reached during a sharp selloff in bonds in the euro zone, the United States and Britain, as investors bet central banks would hike interest rates even further than previously expected. Yields move inversely to prices.

Germany39;s twoyear yield , which is highly sensitive to interestrate expectations, rose to 3.393, the highest since autumn 2008. It was last up 8 basis points bps at 3.366.

Global yields were already higher on the day, and rose further after data showed that U.S. private payrolls increased much more than expected in June. Separate data showed that U.S. job openings dropped in May, but remained elevated.

Market analysts and traders said the minutes from the U.S. Federal Reserve39;s latest meeting, released on Wednesday, were likely another factor boosting yields on Thursday.

The minutes showed the bulk of policymakers expected they would need to tighten policy further, though they held interest rates at that meeting.

Giles Gale, head of European rates strategy at NatWest Markets, said investors were coming to terms with the idea that central bankers are going to keep rates higher for longer.

That central banks are going to break something and they39;ll be cutting rates soon, that39;s a story that just isnt tracking, he…