The yield on German 10-year government bonds has reached a 15-year high, while primary market demand remains stable.

⑴ Germany issued €3.769 billion in 10-year government bonds through auction on Wednesday, with an average yield of 3.26%, marking the highest level for this maturity in 15 years. Additionally, €2.231 billion worth of bonds were retained without being sold, reflecting the ongoing trend of rising global financing costs.⑵ In the secondary market, the yield on Germany's 10-year government bonds rose by 1 basis point to 3.26% during the day, almost matching the primary market issuance rate, indicating that the pricing of the new bonds is in line with market trading levels.⑶ The bid-to-cover ratio for this auction was 1.15, nearly the same as the previous 1.14, showing that market demand has not significantly weakened despite yields reaching multi-year highs, and investor willingness to take on the bonds remains stable.⑷ Germany just issued 30-year government bonds through bank underwriting on Tuesday, with the average issuance yield also hitting the highest level in 15 years for this maturity. The sustained increase in long-term rates is pushing up the overall financing costs of the German government.