Bitcoin price today: falls to 2-week low below $113k ahead of Fed Jackson Hole
Eurozone government bond yield curves are steepening, with the 30-year maturity particularly vulnerable. Yields on German 30-year Bunds touched 3.34% on Friday, their highest level since 2011, highlighting the fragility of ultra-long bonds.
Technical and Supply Factors
The technical backdrop has weakened as ultra-long yields rise. With eurozone governments gradually resuming debt issuance after the summer slowdown, additional supply could keep upward pressure on long-term borrowing costs. Germany’s upcoming auction of €2.5 billion in Bunds maturing in 2046 and 2054 will serve as a key test of investor appetite.
Wider Implications
Widening yield spreads across eurozone countries suggest that investor caution is not confined to Germany. The steepening of the curve points to broader concerns about inflation persistence, fiscal dynamics, and the market’s reluctance to hold duration risk. If the trend continues, it could increase refinancing costs for governments and raise questions about debt sustainability in more indebted member states.
Analysis
The return of ultra-long German yields to 2011 levels underscores a shift in market expectations: investors appear less confident in central banks’ ability to maintain low long-term rates. With fiscal pressures mounting across the eurozone — from higher defense spending to green-transition costs — bond supply is set to remain elevated. That backdrop, combined with cautious sentiment toward duration, may limit demand for ultra-long maturities and keep the curve steep. Unless inflationary pressures ease more decisively, eurozone bond markets may face further volatility at the long end.