Interest rate environment
| Yield on ten-year German federal bonds / % | H1 2025 | 2024 | Change in percentage points |
|---|---|---|---|
| Average yield 1) | 2.60 | 2.34 | +0.26 |
| Highest yield | 2.94 | 2.71 | +0.23 |
| Lowest yield | 2.31 | 1.98 | +0.33 |
| Final yield 1) as of Jun 30/Dec 31 | 2.60 | 2.36 | +0.24 |
Source: Thomson Reuters
1) Daily closing prices.
In the first half of 2025, the European Central Bank (ECB) pressed ahead with the policy of cutting key interest rates that began in 2024. It has lowered the key interest rate by one percentage point to 2.15% in four steps since the beginning of 2025.
Yields on German Federal bonds rose significantly in the first quarter of 2025, driven by the financial package announced by the German Government (special fund). As a result of US tariff policy, however, demand for stable investment opportunities increased and yields on German Federal bonds fell back slightly.