German Five-Year Yield Turns Positive for First Time Since 2018
- Bond rout comes as ECB takes more hawkish stance than expected
- Negative-yielding debt in Europe is down around 70% from peak
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German bonds tumbled on Friday, pushing the yield on five-year notes above zero for the first time in over three years as markets braced for the European Central Bank to scale back its accommodative monetary policy.
The yield rose more than 12 basis points to 0.08%, putting it on track for the biggest weekly surge since 2011. It comes amid a rout that gathered pace on Thursday, after ECB President Christine Lagarde indicated policy makers are no longer ruling out an interest-rate hike this year.