The cards on the bond market are being reshuffled

Frankfurt Clearance sale. This terrible word is making the rounds in the bond markets. Starting from the USA, bond prices in the euro zone have also fallen significantly in the past few days and, in return, yields have risen.

In the USA, the yield on ten-year government bonds has climbed to 1.8 percent, the highest level in two years. In Germany, the yield on ten-year government bonds is approaching zero percent for the first time in two and a half years.

Rainer Guntermann, interest rate strategist at Commerzbank, speaks of a “new uncertainty scenario” on the bond markets. He says, “The bond markets are facing a turbulent year.” The effects of increased inflation and the central banks’ exit plans from ultra-expansionary monetary policy are likely to reshuffle the cards in the bond markets.