FRANKFURT (dpa-AFX) – German government bonds gave up temporary gains until the evening on Monday. On the market there was talk of directionless trading without clear impulses. Most recently, the futures contract Euro Bund Future fell by 0.08 percent to 138.60 points. The yield on ten-year Bunds was 2.14 percent.
The bond markets are being driven by the expected monetary policy major central banks, especially the US Federal Reserve. A somewhat slower pace is becoming increasingly apparent here, after the Fed tightened its monetary policy considerably this year. However, with high inflation on the wane, increasing numbers of central bankers are calling for a slower pace of tightening. An interest rate hike of 0.5 percentage points is currently expected for the December meeting, after 0.75 points in each of the past months.
Particularly important economic data were not on the agenda at the start of the week. Production figures from the industry euro zone were better than expected, but they did not move the prices significantly. A meeting between US President Joe Biden and China’s head of state Xi Jinping initially did not bring any decisive impetus. The two heads of state exchanged views on important political issues. These include the Ukraine war, the Taiwan question and the trade dispute between the two largest economies in the world./bgf/he