Government borrowing costs surged worldwide due to a significant sell-off in German bonds, resulting in the largest daily yield increase since reunification. The German 10-year bond yield rose approximately 30 basis points.
German lawmakers reached a consensus on reforming debt policy to increase national defense spending, influencing bond yields and stock markets.
Following political shifts in Germany, investor appetite for riskier assets grew in Europe, prompting noticeable changes in bond yields in different countries.
Ongoing market uncertainties surrounding U.S. trade policies and other global factors persistently impact bond prices, influencing fiscal policies and interest rates.