Germany 10-Year Yield Falls for 5th Session

2026-10-05 08:29 By Agna Gabriel 1 min. read

Germany’s 10-year Bund yield fell to 3.412%, its lowest level since September 8, extending the decline for a fifth consecutive session as investors sought the relative safety of German government debt.

Demand has been supported by renewed concerns over sovereign risk in the Eurozone, particularly following last week’s sharp bond-market sell-off.

France remains a key source of uncertainty, with investors questioning the government’s ability to reduce its budget deficit and secure parliamentary backing for its fiscal plans ahead of next year’s election.

Political concerns have also spread to Spain after PM Sánchez called a snap election following Congress’s rejection of housing measures.

At the same time, Eurozone inflation accelerated to 3.8%, the highest since September 2023 and well above the ECB’s 2% target, largely due to higher fuel prices.

Markets now expect one 25-basis-point rate hike by December, with a smaller chance of another, and see the deposit rate near 3.4% by late 2027.



News Stream
Germany 10-Year Yield Falls for 5th Session
Germany’s 10-year Bund yield fell to 3.412%, its lowest level since September 8, extending the decline for a fifth consecutive session as investors sought the relative safety of German government debt. Demand has been supported by renewed concerns over sovereign risk in the Eurozone, particularly following last week’s sharp bond-market sell-off. France remains a key source of uncertainty, with investors questioning the government’s ability to reduce its budget deficit and secure parliamentary backing for its fiscal plans ahead of next year’s election. Political concerns have also spread to Spain after PM Sánchez called a snap election following Congress’s rejection of housing measures. At the same time, Eurozone inflation accelerated to 3.8%, the highest since September 2023 and well above the ECB’s 2% target, largely due to higher fuel prices. Markets now expect one 25-basis-point rate hike by December, with a smaller chance of another, and see the deposit rate near 3.4% by late 2027.
2026-10-05
German Bund Yields Ease as Bond Selloff Pauses
Germany’s 10-year Bund yield fell further below 3.45% after touching a 17-year high, as the sharp selloff in European government bonds paused and investors weighed demand for safe-haven assets against expectations for further ECB rate hikes through 2027. French bond yields remained near a more than two-decade high amid concerns over public finances, while political uncertainty ahead of the 2027 elections in France and Italy added to fiscal concerns. Investors also digested stronger-than-expected Eurozone inflation, which accelerated to 3.8% last month, its highest since September 2023 and well above the ECB’s 2% target, driven largely by higher fuel prices. ECB’s Isabel Schnabel said the coming months would be key to assessing the energy shock and determining how high rates need to rise, signaling a cautious approach. Still, markets price one further 25-basis-point hike by December, with a small chance of a second, and see the deposit rate reaching around 3.4% by late 2027.
2026-10-02
Bund Rout Pauses After Yields Hit 17-Year High
Germany’s 10-year Bund yield fell below 3.5%, retreating from a 17-year high, as investors weighed demand for safe-haven assets against expectations for further ECB rate hikes through 2027. French bond yields, meanwhile, surged to an over two-decade high after posting their biggest quarterly increase in nearly four decades, as the minority government unveiled a plan to cut the budget deficit, although the fiscal watchdog warned that its economic assumptions were “optimistic.” Expectations for higher ECB rates are pushing borrowing costs across the euro area, raising concerns over debt affordability in the bloc’s most indebted economies. Political uncertainty ahead of the 2027 elections is adding to concerns over their fiscal outlooks. Money markets now price the ECB’s deposit rate at around 2.8% by December, implying one further 25-basis-point hike and a 24% chance of a second move. Markets also see the policy rate reaching around 3.4% by late 2027.
2026-10-01