German Bund Yields Stabilize as Market Eyes Record Debt Supply

2026-01-02 10:06 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield held steady at 2.87% at the start of 2026, following a roughly 50-basis-point rise in 2025, the largest annual increase since the 2022 global inflation surge.

Investors are bracing for another year of heavy debt issuance, the effects of German fiscal stimulus, and ongoing geopolitical uncertainties.

Private investors are expected to absorb a record €234 billion in net supply this year, adjusted for ECB activity.

Germany also plans to issue a new 20-year bond, with Dutch pension reform cited as a factor boosting demand; the EU’s largest occupational pension system, worth nearly €2 trillion, is transitioning to a model without guaranteed benefits, freeing it to invest in riskier assets.

A Deutsche Bank survey found that investors expect 10-year Bund yields to remain around 2.9% by the end of 2026, while expectations for ECB policy point to sustained interest rates throughout the year.



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