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Reuters

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Business & Economics

Analysis-German spending boost to leave lasting impact on world bond markets

Reuters
Summary
Nutrition label

79% Informative

A sea change in German fiscal policy is rapidly transforming global bond markets.

Germany 's bond market suffered its biggest weekly selloff since the 1990s , pushing 10-year bond yields up 40 bps to around 2.9% .

The parties hoping to form Germany 's next government agreed last week to create a 500 billion euro ( $543 billion ) infrastructure fund.

Aviva Investors senior economist Vasileios Gkionakis estimates fair value for German yields at 3.1-3.2% .

"Historically when you come from below fair value you don't just hit that, you can go as much as 50 bps higher," he said.

VR Score

91

Informative language

98

Neutral language

52

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formal

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English

Language complexity

55

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

short-lived

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