Germany 10-Year Bond Yield Near 4-Week Low
2025-03-31 08:06
By
Joana Taborda
1 min. read
Germany’s 10-year Bund yield extended its decline to below 2.7%, reaching a four-week low, as global borrowing costs continued to fall amid a broad flight to safety.
Investors remain wary as the trade war escalates, raising concerns about its impact on the global economy.
New reciprocal tariffs on US imports, including a 25% levy on autos, are set to take effect this week.
Despite the recent drop, the benchmark European bond yield remains up about 35bps for both March and Q1.
The spread between the US 10-year Treasury yield and Germany’s Bund yield has narrowed by approximately 62bps to around 150bps, its sharpest quarterly decline since 2008, excluding pandemic-related moves.
This is largely due to the German parliament’s approval of a massive fiscal stimulus package, expected to support economic growth.
On the monetary policy front, the ECB has cut rates for five consecutive meetings, but there is no clear consensus on its next move in April.