As inflation accelerates in the 17-nation economy, speculation ascended that the ECB will increase rates, pushing Germany's bond yields to record the highest level in more than 12-months.

ECB left the benchmark interest unchanged during January's rate decision, but with inflation accelerating above the desired levels of 2.0 percent set by the bank, expectations started to emerge whether the bank will increase rates or preserve its monetary stance.

Two-year bond noted declined for the fourth-consecutive week, allowing yields to rise to 1.37 percent, while setting a high of 1.43 percent, the highest since January 4, meanwhile, the 10-year bond yields ended last week's trading at 3.16 percent.