FRANKFURT (dpa-AFX) – German federal bonds went into trading on Wednesday with price gains. The trend-setting futures contract Euro Bund Future rose in the morning by 0.33 percent to 143.86 points. The yield on ten-year Bunds was 1.71 percent. It was thus slightly below the eight-year high of 1.92 percent marked last week.
Safe investments such as federal securities received support from the worse mood on the stock markets. Fears of a recession are spreading there, as many central banks are raising their key interest rates, some of them significantly, in the fight against high inflation. Rising interest rates usually slow down economic growth, which is already suffering from a number of negative factors such as the Ukraine war.
In the afternoon the USmonetary policy to the center. In the United States, Fed Chairman Jerome Powell will hold his regular testimony before the Senate. The Federal Reserve recently intensified its fight against inflation with an unusually large interest rate hike of 0.75 percentage points. It is expected that it will remain true to its course of a much tighter monetary policy for some time to come./bgf/zb
