FX.co ★ German 30-Year Bond Yield Hits Highest Since 2011

The yield on Germany's 30-year bonds has increased to 3.55%, the highest since mid-2011. This rise indicates that investors are seeking higher returns due to the surge in government debt issuance. Germany is set to raise €512 billion this year for infrastructure upgrades and to bolster defense spending, amidst strong competition from other European borrowers. Despite this competitive context, demand for German debt remains robust. January's issuance of a new 20-year bond drew near-record orders, and there was noticeable interest in the conventional two-, 10-, and 30-year bonds. Other euro area countries also experienced record demand for their bonds last month. Additionally, investors are now focusing on the forthcoming European Central Bank meeting, where it's anticipated that policymakers will maintain current monetary policy while evaluating the deflationary effects of a stronger euro.