Current Interest Rates at a Glance
The ECB deposit rate currently stands at 2%, while the US yield curve shows the following rates for various maturities: 2 years - 3.57%, 5 years - 3.71%, 10 years - 4.14%, and 30 years - 4.73%. These differing interest rates are not only crucial for the monetary policy of the respective central banks but also have immediate effects on the bond markets and the yields that investors can expect.
US Treasury Yield Curve
29.10.2025
Implications for Bond Investors
For bond investors, the current interest rate situation means that yields in the USA are significantly higher than in the Eurozone. This could entice investors to invest in US bonds to benefit from the more attractive yields. However, investors should also keep an eye on the risks associated with rising interest rates, particularly regarding the price development of bonds. Higher interest rates typically lead to falling bond prices, which can be detrimental for bonds already held.
Additionally, the interest rate differential between the two regions could lead to increased volatility in the markets as investors react to changes in monetary policy. The difference between the USA and Europe presents both opportunities and risks that investors should carefully weigh.
