German Bond 10 YR

Understanding the Dynamics of German Bonds in Today’s Market

Today, Saturday, we bring you an article about the interesting world of bonuses. This time, we are going to talk about German bonds.

German bonds, also known as Bunds, are government bonds issued by the Federal Republic of Germany. These bonds are considered one of the safest financial assets in the world due to Germany’s economic strength and its debt repayment history. German bonds are issued in euros and have maturities ranging from a few months to 30 years or more.

Here are some key points on German bonds:

Safety: German bonds are considered a safe investment due to Germany’s AAA credit rating and its ability to reliably meet interest and principal payments.

Yield: German bonds often have low or even negative yields. This means that investors may be willing to accept negative returns in exchange for the security they offer.

Safe Haven: In times of economic uncertainty or crisis, investors tend to seek refuge in German bonds due to their safe haven status.

Impact on global markets: German bonds are a key benchmark in debt markets in Europe and have a significant impact on interest rates throughout the euro region. Changes in German bond yields may influence economic conditions in the euro zone as a whole.

European Central Bank (ECB) Policy: ECB policy, including interest rates and stimulus measures, can affect German bond yields, as Germany is the largest economy in the euro zone.


Since 2011, the rental rate of these bonds was not so high. Caution must therefore be maximum at this time. Such a high profitability can stop being so at any time and even more so if we are talking about bonds with reference to a country, and its geo-economic situation.

Short time for BUNDS

In a shorter period of time, and understanding that we are in price zones that have not been seen since 2011, the price seems to have found an area of ​​strong resistance within a wedge (almost channel) with a slight upward trend. It appears to be a strong distribution zone and could have difficulty moving further up.

Therefore, bondholders should pay attention, because profitability could fall.

Remember that this is not a recommendation to buy or sell investment products. Person not qualified to invest in bonds, please always consult with a trusted financial advisor.

A cordial greeting.

Happy Saturday!

Jesús Sánchez-Bermejo