Interest rate environment
|Yield on ten-year German Federal bonds (%)|
Source: Thomson Reuters
Due to the effects of the Covid-19 pandemic, yields in the Eurozone remained at a very low level. The interest rate on ten-year German Federal bonds (bunds) remained negative in 2020 and, following the outbreak of the pandemic in Europe, dropped to a level below –0.5 % by the end of the year. The ECB’s pandemic emergency purchase program made a significant difference in this respect (volume as of December 31, 2020: € 1.85 trillion), which was supported by further European and national measures.