The 30-year government bond yield in Germany is expected to reach its highest level in 14 years.

German bond bear market steepens, with 30-year bond yields reaching their highest closing level since 2011, following the largest weekly increase in four months, as fiscal concerns persist. The yield on German 30-year government bonds rose by 2 basis points to 3.23%, with a cumulative increase of 14 basis points this week. Traders are lowering their expectations for a rate cut by the European Central Bank, as policy maker Isabel Schnabel stated that a significant downward shift in inflation must occur for further rate cuts to be justified. Swaps contracts suggest a further cut of 19 basis points for the remainder of the year, lower than Thursday's 21 basis points and last week's 27 basis points.