The benchmark yield on US government bonds rose to 3.29 percent shortly after the opening of the stock exchange on Wall Street, the highest since May 2011.
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The Belgian ten-year interest rate is also rising further, having already exceeded 2 percent for the first time since 2014 last week. On Monday afternoon, the Belgian interest rate climbed to 2.29 percent.
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The European Central Bank (ECB) warns that inflation will remain too high until 2024 and predicts a larger-than-expected rate hike in the coming period. The ECB confirmed that it will end its bond purchases on July 1 and plans to raise interest rates by 25 basis points on July 21. That is the first rate hike in eleven years. In addition, the ECB is also hinting at a larger interest rate hike in September. This means that the years of flexible monetary policy are gradually coming to an end.
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Higher interest rates are bad news for the government, but also for private individuals who want to buy a house. In the case of a loan with a fixed interest rate, the interest on home loans is linked to government bonds.
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