German bonds still under pressure

FRANKFURT (dpa-AFX) – The prices of German government bonds continued to fall on Friday. In the morning, the trend-setting futures contract Euro-Bund-Future fell by 0.42 percent to 153.04 points. The yield on ten-year Bunds rose to 1.16 percent.

Yields on the bond market have been on the up since Tuesday. Most recently, robust US economic data had reignited global inflation concerns and fueled speculation that the central banks could take more decisive action than previously expected to combat high inflation.

Recent data from Germany fit this picture. In this country, prices at the manufacturer level rose at record speed. Producer prices increased significantly by 37.2 percent in July compared to the same month last year. Producer prices usually also affect consumer prices, on which the European Central Bank bases its monetary policy aligns./la/jkr/mis

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