Employees wanted: Far more jobs have recently been created in the USA than forecast by experts.
(Photo: AP)
Frankfurt The turnaround in interest rates is becoming increasingly clear. On Friday, the good labor market data in the USA contributed to the fact that the yield on the ten-year US government bond jumped to a good 1.9 percent. The five-year paper is now at almost 1.8 percent – and thus in a range that even the ten-year paper had not reached for a long time.
This has a contagious effect on the yields on German government bonds, which also rose. At 0.2 percent, the ten-year bond is now quite solidly in positive territory after a long period of minus. And the five-year term just barely made it past zero.
The increase was noticeable everywhere: the Italian ten-year government bond, which was well below one percent for long stretches last year, has passed the 1.7 percent mark. After deducting inflation, a large part of the bond market is still deep in the red.
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