FRANKFURT (DEUTSCHE-BOERSE AG) - After hitting new peaks, bond yields are easing slightly as the week draws to a close. New corporate bond issues are meeting with increased interest, while PNE is offering a bond swap.

May 22, 2026. FRANKFURT (Deutsche Börse). High volatility continues to prevail in the fixed-income markets. During the first half of the week, the recent upward trend in yields initially persisted. 'Yields on long-dated government securities jumped to new year-to-date highs across the globe,' notes Elmar Völker of LBBW. Beyond market technicals, the analyst sees one primary driver for this development: 'The growing risk that inflation will remain at an elevated level more permanently is clearly causing significant concern among bond market investors.' In contrast, this anxiety appears less pronounced in commodity and equity markets, judging by recent price movements.

Pullback after new multi-year highs

In the US, the yield on ten-year Treasuries climbed as high as 4.69 percent during the week, marking its highest level in over two years. The yield on ten-year Bunds even reached a new five-year high at 3.20 percent. However, these levels could not be sustained initially. On Friday morning, the bonds are yielding 4.57 percent and 3.06 percent, respectively. 'Prices have returned to their old trading range,' explains Ilona Korsch of Hauck Aufhäuser Lampe. Domestically, the level below 3.10 percent now points toward yields falling back toward the 3 percent mark.

Heavy buying in Deutsche Telekom bonds

In the corporate bond segment, new issues were particularly sought after. Raffaele Antacido of ICF Bank reports on newly launched sovereign bonds from France, Morocco, Canada, and the US. From the trader's perspective, it is striking that several new issues are currently denominated in Swiss francs. As an example, he cites a bond from Deutsche Telekom. However, there was also demand for a Euro-denominated bond from the Bonn-based group, which has been on the market since 2019 and offers a yield of 3.5 percent through 2034 (XS2024716099). A Commerzbank debt instrument maturing in 2028 was 'traded in both directions,' according to Antacido (DE000CZ40M39).

PNE offers bonus in bond swap

Gregor Daniel of Walter Ludwig Wertpapierhandelsbank also points to two new bonds that were 'promptly snapped up.' The US dollar-denominated paper from the Argentine energy utility Empresa Distribuidora y Comercializadora Norte offers a yield of nearly 10 percent over a seven-year term (USP3710FBA14). The Heidelberg Materials bond maturing in 2035 is yielding just over 4 percent (XS3379436598).

The trader also reports slight gains for a PNE bond (DE000A30VJW3). This follows the company's announcement that it will issue a new bond maturing in June 2031 with a coupon range of 6.75 to 7.75 percent. Holders of the existing bond, which runs until 2027, are to receive an additional cash settlement of 12.50 Euro as part of an exchange offer.

The bond can be subscribed to via Deutsche Börse Frankfurt starting Tuesday.

By Anna-Maria Borse, May 22, 2026 © Deutsche Börse AG

(Deutsche Börse AG is solely responsible for the content of this column. The articles do not constitute an invitation to buy or sell securities or other assets.)