Interest rate environment
| Yield on ten-year German Federal bonds / % | 2024 | 2023 | Change (percentage points) |
|---|---|---|---|
| Average yield | 2.34 | 2.46 | –0.12 |
| Highest yield | 2.71 | 3.02 | –0.31 |
| Lowest yield | 1.98 | 1.90 | +0.08 |
| Year-end yield | 2.36 | 2.03 | +0.33 |
Source: Thomson Reuters
In 2024, the ECB lowered the interest rate on the deposit facility in four steps by 1.0 percentage points in total. This was in response to weakening economic data and a simultaneous fall in inflation rates in the Eurozone. While yields on the euro bond market initially rose slightly in the first half of 2024, they fell back as a result of lower central bank interest rates, but then rose again due to global political uncertainties. Overall, yields moved within a comparatively narrow corridor. The yield curve remained inverted in 2024.