German bonds: Significant price losses – Fed statements weigh on them
FRANKFURT (dpa-AFX) – The prices of German government bonds fell noticeably on Thursday. By noon, the trend-setting futures contract Euro-Bund-Future had fallen by 0.27 percent to 170.08 points. The yield on ten-year Bunds was minus 0.05 percent.
Market observers pointed to a rise in yields in the USA according to the latest statements by the US Federal Reserve, which would also have pulled the yields on Bunds up. In return, the courses came under pressure.
As can be seen from the minutes of the latest interest rate meeting of the US Federal Reserve, the economic and inflation developments speak for a faster exit from the ultra-loose monetary policy. In the minutes published the previous evening it is said that the Fed members rate the inflation trend as higher and more stubborn than previously assumed. In the market, this was taken as an indication of a more rapid rise in US interest rates.
“In addition to the discussion about more significant rate hikes, it was above all the demands of some members to start reducing the balance sheet relatively soon after the first rate hike that frightened the risk markets,” commented the Dekabank analysts. A reduction in central bank balance sheets should weigh on all assets. In addition to the bond markets, the stock markets also came under pressure on Thursday.
The prices of German Bunds were also negatively impacted by unexpectedly positive economic data. In Germany, the increase in incoming orders in German industry was stronger than expected. “After the disastrous October data, incoming orders can pick up again in November,” commented Thomas Gitzel, chief economist at VP Bank. In addition to the strong incoming orders from abroad, the expert also referred to the plans of the new federal government for an ecological restructuring of industry and greater digitization.
In the afternoon, inflation data from Germany are eagerly awaited. Initial data from the federal states suggest that inflation will continue to be dynamic. In the US, figures on the labor market are also on the program./jsl/jkr/jha/