Yields on ten-year government bonds back above zero percent

Frankfurt It took a lot of attempts, but now the time has come. The end of negative interest rates is here. The yield on the ten-year Bund left negative territory for the first time since May 2019 on Wednesday morning. It peaked at 0.0006 percent.

This is important because the ten-year federal bond is the benchmark for the development of long-term capital market interest rates – not only in Germany but in the entire euro zone. Bond yields in other euro countries are measured against Bunds, as are corporate bond yields. The ten-year “Bunds” are also a decisive benchmark for mortgage interest rates.

After the ten-year Bund yield last yielded a positive return almost three years ago, the bond market was booming.