Germany's 10-year bond yield reached a record high moving above 2.35% for the first time since December 1. The move reflects a shift in investor expectations regarding the European Central Bank's (ECB) monetary policy direction.
Moreover, the record follows cautionary statements from several ECB policymakers, including Chief Economist Philip Lane and Belgian Central Bank Chief Pierre Wunsch, who emphasized the necessity of more conclusive evidence of inflation moving towards the ECB's 2% target before any potential rate cuts are considered.
In addition, today, the Federal Statistical Office (Destatis) said that inflation in the country came in at 2.9% in January, while the Harmonised Index of Consumer Prices saw a year-over-year increase of 3.1%. At 11:53 am CET, the Bund 10-YR was up by seven basis points to 2.362%.
