The end of free money ( for now )

German interest rates continue to move higher, with the 30-year government bond yield now around 3.6%, close to its highest level in more than a decade.

The contrast with the previous cycle is striking. In 2020, long-term German yields briefly traded below zero. Today, governments, companies and households must once again pay a meaningful price for capital.

The era of zero interest rates and virtually free money is clearly over. Higher financing costs will increasingly influence public budgets, corporate investment decisions and asset valuations.