Institution: Focus on Germany's bond issuance plan ahead of the European Central Bank meeting.

date
19/12/2025
The 2026 financing plan of the German Federal Finance Agency is expected to be the focus on Thursday, with the market anticipating a significant increase in issuance compared to 2025. Hauke Siemssen from the research department of the German Commercial Bank stated in a report, "With increased infrastructure and defense expenditures, the German Federal Finance Agency is expected to announce a record issuance of German bonds for 2026." He also mentioned that the ten-year German bond yield is expected to remain around 2.85%, with a focus on the steepening yield curve and swap spreads. Investors in Eurozone government bonds will also closely monitor the European Central Bank's new inflation and GDP forecasts, while the central bank is expected to maintain interest rates unchanged.