FRANKFURT (dpa-AFX) – German government bonds started trading on Wednesday with losses. In the morning, the trend-setting futures contract Euro-Bund-Future fell by 0.53 percent to 136.62 points. In return, the yield on ten-year Bunds rose to 2.32 percent.
In the middle of the week, the bonds that are considered safe were hardly in demand given the renewed appetite for risk on the capital markets. Yields rose particularly sharply in Great Britain, after inflation there picked up again from an already very high level. In September, consumer prices rose by 10.1 percent year-on-year, slightly more than analysts had expected. This increases the pressure on the British central bank to brace itself against the strong rise in prices with significant interest rate hikes.
British Prime Minister Liz Truss, meanwhile, has to face questions from MPs for the first time since her about-face in tax policy in Parliament. There is a lot at stake for the Conservative leader in the House of Commons on Wednesday: a poor performance could further weaken the Prime Minister and bring about her downfall.
In the afternoon, the focus is on the USA. On the agenda are indicators for the US housing market with data on building permits and starts in September, as analyst Sebastian Grupp from DZ Bank pointed out. In his opinion, the sharp rise in mortgage interest rates and the deterioration in the economic situation are likely to have continued to cause problems./la/zb