FRANKFURT (dpa-AFX) – German government bonds went into trading on Wednesday with slight price gains. The futures contract Euro-Bund-Future, which is trend-setting for the bond market, rose in the morning by 0.04 percent to 159.45 points. The yield on ten-year federal bonds was 0.50 percent. It was thus close to the high it had reached the day before since October 2018.
According to Landesbank Hessen-Thringen, interest rate expectations are currently dominating the bond markets. By contrast, the fluctuating risk aversion caused by the Ukraine war has had little impact on bond prices and yields. Monetary policy, especially from the USA, is currently setting the direction. According to the US Federal Reserve, it is about to raise interest rates in a number of ways in order to dampen the high inflation that is expected to continue to rise. In the meantime, the Fed also considers higher interest rate hikes than the usual 0.25 percentage points per meeting to be possible.
Only a few economic data are expected for the middle of the week. However, a number of senior central bankers, including US Federal Reserve Chairman Jerome Powell and British Federal Reserve Chair Andrew Bailey, have spoken out again./bgf/eas