The yield on Germany’s 10-year bond rose to the highest level since 2011 as traders bet that the European Central Bank will sustain a higher level of interest rates for longer.
(Bloomberg) — The yield on Germany’s 10-year bond rose to the highest level since 2011 as traders bet that the European Central Bank will sustain a higher level of interest rates for longer.
Bund yields rose four basis points to 2.58%. Money markets briefly priced in the ECB’s key rate peaking as late as February 2024 at 3.9%, in the wake of strong US inflation data Friday that sparked a repricing across global rates markets.
–With assistance from Libby Cherry.
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