FRANKFURT (dpa-AFX) – German federal bonds went into trading on Wednesday with slight losses. In the morning, the trend-setting futures contract Euro-Bund-Future fell by 0.13 percent to 152.35 points. The yield on ten-year federal bonds was 1.06 percent.
Interest rates have recently been boosted by rising expectations of the European Central Bank’s (ECB) monetary policy. On Tuesday, ECB interest rate hikes by a total of one percentage point this year were expected on the financial markets. This is the highest value so far in the pandemic. The decisive factor is the high level of inflation, which is currently at its highest level since the introduction of the euro.
Mid-week inflation data from the euro zone should confirm high inflation. Figures from the US real estate market are also on the agenda. In view of rising mortgage interest rates and sharply rising construction costs, the housing market, which is important for the US economy, has recently tended to be weak./bgf/eas