BNP Paribas Sees Risk German Yield Hits 4% on Spending Boost

A likely ramp-up in German fiscal spending risks pushing the 10-year bund yield to levels last seen during the global financial crisis, according to a BNP Paribas SA strategist.

Plans for Europe’s largest economy to raise spending for defense and infrastructure were a “game changer” for both the euro zone and for markets, said Sam Lynton-Brown, global head of macro strategy at BNP Paribas at a briefing on Tuesday.