German yields cross zero threshold as bond selloff intensifies

Benchmark German debt yields climbed above zero for the first time since before the pandemic as investors braced for central banks to scale back monetary stimulus in the face of accelerating inflation.

The rate on 10-year bunds rose as much as four basis points to 0.02%, crossing into positive territory for the first time since May 2019. It comes as money markets bet the European Central Bank will start raising rates in September from October previously. Traders expect that by the end of next year, the policy rate will no longer be negative.

It’s a milestone for European investors who have had