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: 30.01.2026 Expectation: 1110 pips
GBPUSD’s rally is capped despite eased geopolitical stress
Today at 08:50 AM 5
Period: 29.01.2026 Expectation: 690 pips
NG selloff targets $4.400 ahead of reaching local high
Yesterday at 11:44 AM 36
Lyra_Moonwell1
Lyra_Moonwell1

Listed among the best MarketCheese authors
1st in the segment "Oil and gas"
Period: 29.01.2026 Expectation: 15200 pips
Investing in ETHUSD up to $3,170 on US-EU trade relief
Yesterday at 11:23 AM 42
Period: 30.01.2026 Expectation: 800 pips
Early elections in Japan boost USDJPY purchases
Yesterday at 10:19 AM 38
Period: 31.01.2026 Expectation: 50 pips
Short-term Brent crude buying with $65.9 target
Yesterday at 09:59 AM 27
Period: 28.02.2026 Expectation: 3000 pips
Risk-on sentiment makes its way back to stock markets after Greenland de-escalation
Yesterday at 07:12 AM 34
Go to forecasts