German yield curve steepens as ECB tapered German bond purchases

2-yr yield +2.5bps

5-yr yield +6.4 bps

10-yr yield +7.8 bps

As mentioned here earlier – this sharp rally in German yields is due to the fact that the ECB fell short of its purchases of the German bunds for the third straight month in June. This is as good as a QE taper for Germany.

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