German Borrowing Costs Highest Since 2011 on Spending Spree

The yield on German 30-year bonds has climbed to the highest level since 2011 as investors demand higher compensation in response to a surge in government debt issuance.

The return owed to holders of the benchmark bond rose 4 basis points to 3.56%, while yields on shorter-dated 10-year peers increased three basis points to 2.90%. The additional premium demanded to hold 30-year notes over five-year peers has risen to 108 basis points, close to a seven-year high.