German Government Bonds Rise as Traders Reduce ECB Rate Hike Bets After ZEW Index Plunges

MaticHoleFiller · 2026-03-25T19:57:58+00:00

German government bonds continue to rise, with the 10-year bond yield falling to 2.92%. Following a sharp decline in the March ZEW sentiment index, market bets on ECB rate hikes have decreased. Rate hikes are now expected to total 38 basis points this year.

MaticHoleFiller

2026-03-25 19:57:58

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German government bonds continued to rise, and the currency market’s bets on the European Central Bank raising interest rates have decreased, following a sharp decline in the March ZEW survey expectations index in Germany.

The yield on 10-year German government bonds fell by 3 basis points to 2.92%. Traders now expect the European Central Bank to raise interest rates by 38 basis points this year, down from 41 and 48 basis points forecasted on Monday and last Friday, respectively.

Since the outbreak of the Iran war, German ZEW data has been seen as an early indicator of economic health.

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