German bond yields jump after Scholz reported to support joint EU debt

Posted on October 10, 2022Comments Off on German bond yields jump after Scholz reported to support joint EU debt

© Reuters. FILE PHOTO: German Chancellor Olaf Scholz waits to welcome Hungarian Prime Minister Viktor Orban for bilateral talks at the Chancellery in Berlin, Germany, October 10, 2022. REUTERS/Lisi Niesner/File Photo

(Reuters) – German government bonds fell on Monday, pushing yields higher after a media report saying Germany’s Chancellor Olaf Scholz supported joint-debt issuances to tackle the energy crisis.

Germany’s 10-year bond yield rose 11 basis points to 2.31%..

Italy’s 10-year yield dropped 1.5 bps to 4.68%.

“More fiscal stimulus will mean more inflationary risks and possibly further rate hikes,” Antoine Bouvet, senior rate strategist at ING.

“Peripheral bonds would benefit most from such measures which would involve less bond supply and possibly lower yields thanks to a joint effort by the EU,” he added.

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Comments Off on German bond yields jump after Scholz reported to support joint EU debt