German govt bonds weighted avg price 98.33; avg yield 2.78%

On April 1, 2026, the weighted average price of German government bonds stood at 98.33, with an average yield of 2.78%. This reflects a mixed trend in the bond market, where yields have risen sharply over the past month but have recently seen a slight pullback. The 10-year Bund yield, a key benchmark, eased to 2.98% on March 31, down 6 basis points from the previous session, though it remained on track to record a 37 basis point increase for March—the largest monthly rise since late 2022.

The upward pressure on yields has been driven by inflation concerns, with Germany's EU-harmonized inflation rate reaching 2.8% in March, exceeding the European Central Bank's 2% target. Soaring energy prices, linked to the ongoing Middle East conflict, have intensified inflationary pressures across the Eurozone. As a result, market expectations for ECB rate cuts have diminished, with investors now pricing in at least two rate hikes by 2026.

Despite the recent dip in the 10-year Bund yield, the broader trend remains upward, with the yield up 27 basis points over the past month and 30 basis points compared to a year ago. Analysts expect the yield to reach 3.10% by the end of the quarter, with a projected decline to 2.91% in 12 months. The European Central Bank, while committed to curbing inflation, has emphasized that timing for rate adjustments remains premature.