The German 10 year yield has hit its highest levels since 2011 as investors begin to price in their belief that the ECB will keep the interest rates hike up for a longer span of time. Yields and the price of a bond are inversely related. As the yields go up the more risker they get and therefore the price drops.
To attract investors, newly issued bonds will need to have their coupon rates match or exceed their national bank interest rates.
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