German Bund Yields Near Multi-Year High

2026-09-18 07:42 By Joana Ferreira 1 min. read

Germany’s 10-year Bund yield ended the week around 3.5%, after reaching 3.57% on Tuesday, its highest level since June 2009, as markets digested a more hawkish tone from the Federal Reserve that could reinforce expectations for tighter monetary policy globally.

However, some analysts argued that markets may have gone too far in pricing ECB rate hikes, noting that elevated energy prices could weigh on economic growth and ultimately reduce inflationary pressures.

Money markets now price the ECB deposit rate at just below 2.9% by December, implying roughly a 50% chance of another hike this year.

Elsewhere, the Bank of England held rates steady on Thursday but warned that a prolonged Middle East conflict could prompt tighter policy, while the Bank of Japan raised rates to their highest level in 31 years and signaled further tightening ahead.



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