German 10y yields moved briefly into positive territory over the past week and have clearly stayed above -0.1%, which they struggled to do in 2021. After a 35bps jump since the mid-December low, the question now is whether there is more scope for rises. The one-month rise is amongst the highest in recent years (Chart 1). The bigger increases only occurred after crisis periods – COVID (April 2020) and Euro crisis (June 2015). This suggests near-term caution.
German 10y yields moved briefly into positive territory over the past week and have clearly stayed above -0.1%, which they struggled to do in 2021. After a 35bps jump since the mid-December low, the question now is whether there is more scope for rises. The one-month rise is amongst the highest in recent years (Chart 1). The bigger increases only occurred after crisis periods – COVID (April 2020) and Euro crisis (June 2015). This suggests near-term caution.
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