German Yields Most Sensitive to ECB Policy Exceed Deposit Rate
- Two-year yield above deposit rate for first time since 2015
- This is only the beginning, according to ING Groep’s Bouvet
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Germany’s two-year bond yields climbed above the European Central Bank’s deposit rate for the first time since 2015, as investors dump the debt on the prospect of interest-rate hikes this year.
The yield, which is most sensitive to policy rates, climbed four basis points to minus 0.49%, the highest since 2016. It’s surged in the past two months as record euro-area inflation puts pressure on policy makers to act.