LONDON, June 3 (Reuters) - German bond yields rose on Wednesday, following their biggest daily rise seen for nearly three years, after a surprise uptick in inflation and the prospect of a deal to unlock Greek aid.
Traders said the move accelerated after data showed a better-than-expected rise in consumer prices on Tuesday and became more pronounced after Greece's creditors drafted an agreement in a bid to conclude four months of acrimonious negotiation.
"People had not been positioned for this," said one European government bond trader. "It has triggered a number of stop losses, and is spiralling further."
German 10-year yields rose 2 basis points to 0.72 percent in early trading, following a 13 bps surge on Tuesday. Bund futures fell 25 ticks to 152.90.
(Reporting by John Geddie; Editing by Sudip Kar-Gupta)