Interest rate environment
| Yield on ten-year German Federal bonds (%) | 2020 | 2019 | Change |
Average yield | –0.48 | –0.22 | –0.26 |
Highest yield | –0.14 | +0.28 | –0.42 |
Lowest yield | –0.91 | –0.74 | –0.17 |
Year-end yield | –0.58 | –0.19 | –0.39 |
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.
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