Reported about 5 hours ago
Germany's benchmark bond yields are nearing 3% for the first time in 18 months, driven by expectations of significant borrowing for defense and infrastructure investments. The 10-year rate recently climbed to 2.93%, marking a notable rise of 53 basis points this month due to plans by prospective Chancellor Friedrich Merz to unlock hundreds of billions for these purposes. Investors are demanding higher returns on long-term debt, anticipating a shift in fiscal policy that could take borrowing costs higher than during the pandemic years, where yields dropped below zero.
Source: YAHOO