FRANKFURT (dpa-AFX) – German government bonds increased in price on Tuesday. At noon, the trend-setting futures contract Euro Bund Future rose by 0.21 percent to 149.76 points. The yield on ten-year Bunds fell to 1.29 percent. The eight-year high of 1.92 percent from mid-June is currently a long way off.
Since mid-June, safe investments such as federal securities have been in greater demand again after having been under pressure in the weeks before. Increasing concerns about a recession are the main reason for the turnaround. An economic downturn is feared, triggered by the numerous negative factors to which the global economy is currently at the mercy. These include the energy shortage, delivery bottlenecks in world trade, the war in Ukraine, high inflation and the central banks’ fight against this in the form of rising key interest rates.
Economic data, meanwhile, continue to paint a negative picture for the euro zone. Business sentiment fell to a 16-month low in June, S&P Global said. “The sharp slowdown in the eurozone economy is increasing the risk that the region could slip into a downturn in the third quarter of 2022,” commented Chris Williamson, chief economist at S&P Global./bgf/stk