Reported about 8 hours ago
The bond market is reacting negatively to discussions about increased German borrowing for defense spending, with the German 10-year bond yield rising significantly. Policymakers are considering a €200 billion spending package amidst political dynamics following a recent election. While investors acknowledge Germany’s capacity to borrow, they seek higher yields given the potential increase in bond issuance. Analysts express skepticism about the immediate reform of Germany's debt rules due to political fragmentation, though expectations for change are rising.
Source: YAHOO