13 March 2025 | Euro

German 10-year bond yield hit its highest level in 18 months

German 10-year bond yield hit its highest level in 18 months

According to Bloomberg, Germany's 10-year bond yield hit 2.93% on Wednesday, the highest since October 2023. The increase was driven by the Germany's future government planning to relax borrowing rules for defense and infrastructure investments.

The potential change in Germany’s fiscal policy led to the gap between the 2- and 10-year yields now amounting to about 70 basis points, the highest since July 2022, the agency reports. However, some market participants believe the repricing has already overshot. 

Such trend has also spilled over to other European counties’ bonds. This reflects market expectations that these nations will also boost defense spending, Bloomberg notes.

Elena Berseneva MarketCheese
Period: 24.06.2026 Expectation: 4600 pips
Selling GBPUSD ahead of BoE meeting
Today at 08:48 AM 8
Period: 30.04.2026 Expectation: 750 pips
SPX sell-off targets 7,050
Today at 08:33 AM 6
Period: 01.05.2026 Expectation: 840 pips
USDCAD is poised to take breather by week’s end before resuming its rise
Today at 08:20 AM 7
Period: 30.04.2026 Expectation: 1150 pips
Selling USDJPY down to 158.500 as resistance looms
Yesterday at 10:16 AM 25
Period: 07.05.2026 Expectation: 110 pips
Selling S&P 500 down to 7,000
Yesterday at 10:16 AM 21
Period: 07.05.2026 Expectation: 200 pips
Investing in ETHUSD with $2,550 target
Yesterday at 09:43 AM 30
Go to forecasts