German-U.S. Yield Spread Shows Growing Chasm Between Fed and ECB

Updated on
  • Fed increases interest rates for first time since 2006
  • German two-year note yields below zero since August 2014

The Fed Rate Hike in Two Minutes

While the bond market largely weathered the Federal Reserve’s first interest-rate increase in almost a decade, the yield difference between German and U.S. notes serves as a stark reminder of the diverging paths of two of the world’s major central banks.

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