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Sovereign debt – The risk of rising rates
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© Commerzbank
07 August 2026: Sovereign debt – The risk of rising rates
Yields on European government bonds have risen noticeably in recent months. This is further exacerbating the situation for public finances. Even a de-escalation in the Middle East is unlikely to calm the markets in the long term. Rather, a high supply of government bonds and political uncertainties are likely to weigh on bonds. In the long term, higher market interest rates are also likely to worsen financing conditions for companies.
