Notable German 2yr yield cycles

comparing the current yield cycle to past episodes

Is the current yield cycle unique ?

In the past three months:

• the German 10-year yield moved higher by 61 basis points, reaching 2.60%
• the broad sell-off observed over the last three months has been quite substantial and intense if compared to notable episodes in the past
• if the macro environment is not supportive, then the probability of a trend reversal is now moving higher

IntroMomentum investing is a strategy that involves buying assets (like stocks or bonds) that have been performing well and selling those that have been performing poorly, based on the idea that recent trends will continue.

Chart guideFor the human eye, we have prepared the above chart to show how different or similar is the current yield trend for the German 10-year Bund yield versus notable episodes of the recent past. This is simply to help the reader imagine how the current trend might continue in the neat future.

Notable German 10yr yield cycles

comparing the current yield cycle to past episodes

Is the current yield cycle unique ?

In the past three months:

• the German 10-year yield moved higher by 36 basis points, reaching 3.01%
• the broad sell-off observed over the last three months has been moderate if compared to notable episodes in the past
• it is unclear at this point if such trend will continue for some time or reverse

IntroMomentum investing is a strategy that involves buying assets (like stocks or bonds) that have been performing well and selling those that have been performing poorly, based on the idea that recent trends will continue.

Chart guideFor the human eye, we have prepared the above chart to show how different or similar is the current yield trend for the German 10-year Bund yield versus notable episodes of the recent past. This is simply to help the reader imagine how the current trend might continue in the neat future.