Interest Rate Landscape in Europe and the USA
With an ECB deposit rate of 2%, European monetary policy remains relatively cautious compared to the USA. There, the yield curve for 2-year bonds is 3.57%, 5-year bonds 3.71%, 10-year bonds 4.14%, and 30-year bonds 4.73%. These differences potentially offer investors in the USA higher returns, but also increased risk, especially in a rising interest rate environment.
US Treasury Yield Curve
29.10.2025
Impact on Bond ETFs
For investors in bond ETFs, the current interest rate situation means that selecting the right maturities is crucial. Rising interest rates in the USA could lead to price losses for long maturities. Therefore, investors should consider shorter maturities to minimize interest rate risk. Conversely, the relatively low ECB rate could increase the attractiveness of euro-denominated bonds, especially if investors are seeking stability in their portfolios.
Interest Rate Comparison: ECB vs. US Treasury
In summary, the differing interest rates and the shape of the yield curves require careful analysis of bond ETFs. The decision of where and in which maturities to invest could be crucial for the portfolio's return and risk.
