Government bond interest rates kick off the year on a high.
US ten-year Treasuries reached 1.8% on Monday morning, a level not seen since 2020, after rising by a quarter of a point in one week.
The German Bund, negative since May 2019, is about to return to positive territory, at -0.03%.
Concretely, for two and a half years, investors had agreed to lose money to lend to the German state.
It's almost finished.
As for them, the rates of French 10-year Treasury bonds had already crossed this symbolic milestone of a return to the positive as of September 2021, to find it since mid-December, after a brief foray below zero.
Why are the rates going up?
All of this is
"a taste of what may follow in a year of high inflation and expected tightening of monetary policies,"
said Michael Leister, head of rate strategy at Commerzbank.
"2022 will be a difficult year",
adds Antoine Bouvet, at ING.
This…
This article is for subscribers only.
You have 84% left to discover.
To cultivate one's freedom is to cultivate one's curiosity.
Continue reading your article for € 1 the first month
I ENJOY IT
Already subscribed?
Log in
