Investors will get interest again if they lend money to the federal government over the long term.
(Photo: dpa)
Frankfurt, Berlin The long period of negative interest rates is also coming to an end in Germany. After 141 weeks, the yield on the ten-year German government bond rose above the zero percent mark for the first time on Wednesday. At its peak, it climbed to 0.02 percent.
Clemens Fuest, head of the Ifo Institute, speaks of “a small change with great symbolic value”. Because the ten-year federal bond is considered a guideline for long-term capital market interest rates in the euro area, on which the interest rates for other euro countries, for companies, but also for mortgage rates are based. This is of great importance for debtors, investors and savers.
With the rise in yields, Bunds are anticipating the rate hikes by the US Federal Reserve (Fed). Investors expect four rate hikes in the US this year. US Treasury yields have been higher than Bund yields for a long time. At 1.9 percent, ten-year US bonds are yielding the highest rate since January 2020.
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