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EUR Strengthens as German 30Y Yields Hit 13-Year High at 2.8%
The euro gained 0.2% against major currencies as German 30-year borrowing rates surged to 2.8%, marking the highest level since 2011. This sharp increase from the sub-zero rates seen during 2015-2023 reflects a dramatic shift in European bond markets and provides fundamental support for the euro. The move has left investors who purchased German bonds at negative yields facing substantial unrealized losses. Despite Germany's fiscal discipline remaining among the world's strongest, market participants are increasingly concerned about potential loosening of budget constraints. The elevated yield levels signal normalized monetary conditions and increased borrowing costs across the eurozone. Technical indicators suggest EUR/USD could test resistance at 1.0950 if yields remain elevated, while support holds at 1.0880. The development strengthens the euro's appeal for carry trades and could attract further institutional flows.
EURUSD
Sentiment:
Positive
Source: Finnhub