German 10-year bond yields at 1-week high, new SPD leadership threatens ruling coalition

Credit: REUTERS/KAI PFAFFENBACH

German 10-government bond yields climbed to a one-week high on Monday as a new leadership of the Social Democrats threatened the ruling German coalition.

LONDON, Dec 2 (Reuters) - German 10-government bond yields climbed to a one-week high on Monday as a new leadership of the Social Democrats threatened the ruling German coalition.

The new leaders of the Social Democrats (SPD) are demanding a shift in policies, and several senior conservatives on Sunday ruled out talks to renegotiate a governing agreement.

"Whatever actually happens from here, this news will likely get markets excited about an easier path to more German fiscal policy in the future," Deutsche Bank strategists said in a note.

Benchmark German bond yields were higher across the board with 10-year yields up 5 bps at -0.303% DE10YT=RR in early European trading, leading a broader rise in European borrowing costs.

(Reporting by Saikat Chatterjee; Editing by Dhara Ranasinghe)

((saikat.chatterjee@thomsonreuters.com; +44-20-7542-1713; Reuters Messaging: saikat.chatterjee.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More