The end of negative interest rates is in sight

Frankfurt The long-awaited end of negative interest rates on Bunds is getting closer. On Thursday morning, the relevant ten-year German government bond yielded only 0.05 percent in the red. The effective interest rate is still slightly negative, but it is at its highest level for more than two and a half years.

Shortly before Christmas, the return was almost minus 0.4 percent due to concerns about the consequences of the omicron spread. The inflation expectations that had risen with the oil price and the hope that Omikron would be less dangerous than initially feared then caused prices to fall and yields to rise accordingly.

Now the fears of a faster than expected rate hike by the US Federal Reserve are giving the rest. On Wednesday evening, the minutes of the latest meeting of the US Federal Reserve (Fed) made it clear that at least some central bankers are considering a faster rate turnaround. According to the Commerzbank strategists, the focus will be on an interest rate hike as early as March.