For the first time since 2019 note the 10-year-old frets back to the zero line. As a target for the European markets, the 10-year US Treasury bonds have recently increased to approx. 1,75% attracted.
Let's take a look at the 10-year mid-swap rate, knows this since 17.12.2020 only one direction: From the stabilization at approx. +10bps from November a relatively steep increase in this week at approx. +32bps stands.
The markets have last seen this value in 06.2019 seen. Back then it has been around since October 2018 (Stand at approx. 1,0%) an almost continuous downward trend, one year later at approx. -0,27bps ended. So the market was in 12 Months by approx. 1,25% please.
Upward trend & volatility
The current upward trend has existed for a year with great volatility. The Covid-19 crisis does not allow medium to long-term forecasts, there like e.g.. with the Omikron variant, new, unpredictable influencing factors occur again and again. Market participants remain unsure of how things will continue.
What does the ECB say?
Rising inflation is also putting pressure on the ECB. The voices are clearly increasing, that interest rates need to be increased, to counter inflation. In December, inflation was up to last year +5,0% well above the original ECB inflation target of 2,0%. The ECB is currently assuming a short-term increase in inflation, accordingly, no adjustment of the key interest rate is currently planned. For the 2022 is based on an inflation rate of 3,2% went out.
for Real estate fund manager it makes sense to take action now and review your financing portfolio. We are at your side as a competent partner and look forward to meeting you news.