German yield curve steepens further on expectations for more fiscal spending

June 26 (Reuters) – The German bond yield curve continued to steps on Thursday, driven by expectations of berlin’s increasing borrowing, after us economic data failed to provide clea Bond Markets.

German Lawmakers on Chiursday Passed A Multi-Billion-Euro Package of Fiscal Relief Measures to Boost Investment, Part of the New Government’s Plans to Put Europe’s LarGest ECONOMY BACK on TRACK on TRACK on track for.

Markets are pricing in Increased Bond Supply from Germany to Fund Such Plans, which is expected to push longer-dated bonds yields higher.

Shorter maturities, in the meantime, continue to track expectations for European Central Bank Rates, which have remained relatively stable.

German 30-Year Government Bonds Yields Reached Their Highest Level Since May 26 at 3.111% And was last up 3 Basis points (BPS) at 3.10%.

The 10-Year Yield was up 0.5 BPS at 2.57%, and the 2-Year Yield-More Sensitive to ECB policy rates expectations-was down 2.5 bps at 1.82%.

The Gap Between 30-Year and 2-Year Yields was up 6 BPS on Track for Its Biggest Daily Rise Since Early April.

Deutsche bank raised on Thursday its forecast for the German Economy to 0.5% Growth in 2025, and brough forward its peak growth forecast of 2.0% to 2026.

“Not only is the fiscal impulse over this period likely to be more positive than Tariff Turmoil with Surprising Poise, “Deutsche Bank Chief Economist Robin Winkler Said.

Yields on 2-yar us treasury notes edited early on Thursday after the labor department reported a Slight Fall in Weekly Jobless Claims, But Higher Recurring Claims indicated that more of work for longer.

On Wednsday, Nato Leaders Agreed to Boost Spending on Defense to 5% of GDP, but some european nations, Alredy running large life deficits, may struggle to meet the target.

Germany, which has great scope to increase spending, published its draft budget for 2025 This week, which included recorded recordments to boost green.

Geopolitics has taken a back on thures after the ceasefire between israel and Iran help for now. Oil prices were steady on Thursday.

But there a number a number of other key risk events on the horizon. Us President Donald Trump’s 90-Day Pause to Reciprocal Tariffs Ends on July 9 and It Remains Uncertain What will Haappen When the Deadline Passeses.

Trump is also pushing republicans in the senate to advance his tax-cut and spending bill, which also incines an extension of the debt ceiling. Republican leaders are pushing to get the bill through the senate and onto trump’s desk before the July 4 independence day day holiday.

Italy’s 10-Year Bond Yield Was Down 2 BPS at 3.49%, pushing the yield gap between Italian and German 10-Year Bonds Tighter by 2 BPS to 91.5 BPS.

(Reporting by Stefano Rebaudo, Editing by Tomasz Janowski)