German bond yields on course for biggest weekly rise in a decade


German government bond yields jumped on Thursday as a rout in euro zone markets worsened, putting them on course for their biggest weekly rise in over a decade.

Yields on 10-year German bonds — the bloc’s benchmark — rose as much as 20 basis points to hit 0.799 percent, their biggest daily rise since the middle of 2012.

As of 0930 GMT, yields were up some 38 basis points on the week, set for their biggest rise seen since at least 2004, according to Tradeweb data.

Other euro zone government bond yields rose 4-15 bps.

Strategists said the market capitulation which started last week was sparked by easing deflation fears and investor weariness with ultra-low yields.

“It’s a historical move that we’re experiencing – a continuation of the move we’ve seen in the past few days,” said Jean Francois Robin, head of strategy at Natixis. “The macro picture is getting better in Europe.”


Related Posts

  • 74
    Europe’s leaders argue that only deep budget cuts will revive the economy and inspire the necessary confidence among investors. The deal represents a major milestone for Greece, which was effectively shut out of the markets in 2010 when the debt crisis left it dependent on international bailouts to stay afloat.The…
    Tags: percent, markets, zone, euro, bond, europe
  • 63
    'It sounds far-fetched, I know,” I wrote in this column in December 2007. “But the ultimate victim of this subprime crisis could be nothing less than the single currency’s existence”. Reading it today, the above statement seems pretty reasonable. Many mainstream analysts now recognise the huge stresses imposed by the…
    Tags: german, bond, europe
  • 55
    Source : There is a common misconception that the euro area is a monetary union without a political union. But this reflects a deep misunderstanding of what monetary union means. Monetary union is possible only because of the substantial integration already achieved among European Union countries – and sharing a…
    Tags: euro, europe
  • 49
    The past week saw a dynamic in financial markets that, not long ago, would have been deemed quite unusual: Prices of all kinds of assets, from safe government bonds to risky stocks, rose together. German bunds and U.S. Treasuries gained, pushing yields lower, as the Standard & Poor's 500 Index…
    Tags: market, bonds, bond, markets, historical, picture, rise, week, yields, government
  • 48
    Can you guess where most Chinese nationals are in Europe ? The answer is Italy. Who lives where in Europe? Nationalities across the continent mapped People of many different countries are now living in Europe, with the continent's residents coming everywhere from Jamaica to Tuvalu. Using data from 2011 censuses we have mapped…
    Tags: europe, data