RATES–German 2-year yield positive for 1st time since 2014 | Photo credit: Shutterstock
March 29 (Reuters) – The yield on Germany’s two-year government debt turned positive on Tuesday for the first time since late 2014, amid rapidly rising bond yields on both sides of the Atlantic.
This movement is explained by the rise in expectations that the key interest rates of the European Central Bank (ECB) will be raised in the coming months in the face of accelerating inflation.
The yield on German two-year securities reached 0.01%, its highest level since December 2014. Its Dutch and Belgian equivalent had already become positive on Monday and the French had gone back above zero in the morning on Tuesday.
(Yoruk Bahceli report, with Dhara Ranasinghe, French version Marc Angrand, edited by Matthieu Protard)