Germany's 10-year Bund yield touched -0.10% for the first time since May 2019, amid rising inflationary pressure and prospects of a strong economic recovery, helped by reopening efforts and a quicker pace of COVID-19 vaccination. Earlier this month, ECB Chief Economist Philip Lane told a French newspaper that the ECB could still increase bond purchases at its June meeting to keep borrowing conditions favorable, while policymaker Martin Kazaks said the central bank could decide to reduce the pace of its emergency bond purchases if borrowing costs remain low. Elsewhere, the US reported on Wednesday the highest inflation rate since 2008, fueling fears that central bankers might start tighten monetary policy sooner than expected.
Historically, the Germany Government Bond 10Y reached an all time high of 10.80 in September of 1981. Germany Government Bond 10Y - data, forecasts, historical chart - was last updated on May of 2021.
The Germany Government Bond 10Y is expected to trade at 0.01 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 0.06 in 12 months time.