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German government bond yield at almost 2-month high

German government bond yield at almost 2-month high

reuters.com · 12/29/2021 09:52
German government bond yield at almost 2-month high

- Germany's 10-year government bond yield rose on Wednesday to its highest level in almost two months, lifted by the fading fears of the Omicron COVID variant and markets' focus on the upcoming withdrawal of central banks' pandemic-time stimulus.

Italian bonds underperformed their euro area peers as investors frettedabout the country's political stability should former European Central Bank chief Mario Draghi assume the presidency, leaving his job as prime minister. That could trigger snap elections, the worst-case scenario for investors.

The European Central Bank has also signalled its pandemic-time PEPP stimulus programme will end on schedule in March.

Germany's 10-year Bund yield DE10YT=RR rose 4.5 basis points to its highest since November 4 at -0.193%.

Italy's 10-year yield was up 6.5 bps at 1.166% IT10YT=RR

With Omicron coronavirus cases swelling globally, markets turned slightly more cautious on Wednesday, but risk sentiment remains strong nL1N2TE0HT.

(Reporting by Stefano Rebaudo, editing by Sujata Rao)

((stefano.rebaudo@thomsonreuters.com ; +39. 0266129431; Reuters Messaging: stefano.rebaudo.thomsonreuters.com@reuters.net ));))