Germany’s 10-Year Bund Yield Nears One-Year High

2026-01-20 11:33 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield climbed toward 2.9%, approaching its highest level since March 2025, as investors navigated a mix of stronger-than-expected domestic data and global market turbulence.

Germany’s ZEW Economic Sentiment Index surged to 59.6 in January, its highest since July 2021 and well above forecasts of 50, reflecting optimism for a 2026 economic turnaround despite lingering US trade policy uncertainties.

At the same time, geopolitical tensions and global market shocks added pressure.

US President Donald Trump’s repeated insistence that the US should control Greenland, coupled with threats of tariffs on several European countries if no deal is reached, has left traders and policymakers assessing potential European responses.

Additionally, volatility in Japanese government bond markets, triggered by Prime Minister Sanae Takaichi’s announcement of snap elections in February, further weighed on investor sentiment.



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