Interest rate environment
| Yield on ten-year German Federal bonds / % | H1 2026 | 2025 | Change in percentage points |
|---|---|---|---|
| Average yield 1) | 2.93 | 2.63 | +0.30 |
| Highest yield | 3.20 | 2.94 | +0.26 |
| Lowest yield | 2.64 | 2.31 | +0.33 |
| Final yield 1) as of Jun 30 / Dec 31 | 2.86 | 2.86 | ‒ |
Source: Thomson Reuters
1) Daily closing prices.
In the first half of 2026, the European Central Bank (ECB) initially maintained its monetary policy course and kept key interest rates stable. Against the backdrop of rising inflation risks, the ECB raised its key interest rates by 0.25 percentage points in June 2026. Following a decline at the start of the year, inflationary pressures increased again during the first half of 2026 due to higher energy prices and geopolitical uncertainties and exceeded the target level in the eurozone.
Yields on the euro bond market rose at times during the first half of 2026. After stable development at first, expectations of higher inflation and rising Federal bond issuance, as well as changes in interest rate expectations, led to a slight increase in yields. The yield on ten-year German Federal bonds exceeded the 3 % mark before falling back to the level seen at the start of the year 2026 due to declining price data and a slight easing of geopolitical uncertainties.