Anyone subscribing to ten-year government bonds set to be issued in September can expect a gross yield of 3.7% or 2.59% net, the highest yield in years, according to figures from the Federal Debt Agency.
There are also one-year government bonds. These offer a gross yield of 2.75%, or 1.925% net.
The high yield on government bonds can be explained by the rising interest rates on OLOs, or ten-year government bonds. These rates rose by just under 40 basis points in July and August combined.
The target audience for government bonds is private individuals. In principle, these are issued four times a year, but this is not always the case.
Subscriptions for the new government bonds open on Wednesday.
