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19.03.202613:39:18UTC+00Germany’s 10-Year Bund Yield Nears 15-Year High

Germany’s 10-year Bund yield rose to 3%, approaching its highest level since July 2011, after the European Central Bank left interest rates unchanged as expected but signaled a more hawkish policy stance. The ECB reiterated its commitment to returning inflation to its 2% medium-term target, while cautioning that the war in the Middle East has increased uncertainty, pushing inflation risks higher and weighing on economic growth.

The central bank raised its inflation forecast for 2026 and lowered its growth projections, citing the conflict’s impact on commodity prices, real household incomes, and business and consumer confidence. Money markets are now pricing in 60 basis points of additional ECB tightening this year, implying at least two further quarter-point rate increases.

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