The yield on German government bonds has reached its highest in 11 years

The yield on 10-year German government bonds rose to 2.346% per annum, which was the highest since 2011. The reason for the growth was the statements of German Chancellor Olaf Scholz on the sidelines of the EU summit in Prague. 

Scholz expressed support for the joint placement of debt obligations by the countries of the European Union in order to raise funds to help the members of the bloc in the fight against the energy crisis. The funds raised should be distributed between countries in the form of loans, not grants.

Such a position suggests that the German leadership is significantly changing its rhetoric. Previously, Germany resisted the idea of raising funds together with countries that the German authorities consider more wasteful financially. 

The change of position came after Scholz was criticized for the announced plan to support the national economy by 200 billion euros due to the energy crisis. Some countries were outraged that this plan is aimed solely at supporting the German economy, without taking into account the interests of other EU countries. And this can cause an imbalance in the block.