FRANKFURT (DEUTSCHE-BOERSE AG) : The ECB has delivered, raising key interest rates for the first time since 2023. However, the pivot in monetary policy had been foreseeable for months and was long priced in. No surprises are expected from the U.S. Federal Reserve meeting next week either.

June 12, 2026. FRANKFURT (Deutsche Börse). News from the Persian Gulf continues to hold the markets in its grip. Most recently, U.S. President Trump withdrew his threat of new military strikes against Iran and spoke of a forthcoming agreement. Iran, however, issued a denial. "Nevertheless, financial markets are betting on an end to the military conflict and a prompt reopening of the Strait of Hormuz," reports Helaba analyst Ralf Umlauf, noting falling yields, significantly lower oil prices, and rising stock prices.

Yields have not changed significantly, however: since the beginning of March, ten-year federal bonds (Bunds) have been yielding around 3 percent. On Friday morning, the rate stood at 2.98 percent, compared to 3.02 percent a week ago.

"Early ECB Reaction Helps"

The ECB decision yesterday, Thursday, had little impact. As expected, central bankers reacted to rising inflation and raised key interest rates by 25 basis points : the first hike in nearly three years. While no further rate steps were explicitly promised, they are expected. "Lagarde's description of inflation risks seemed more concerned between the lines than before," says Commerzbank Chief Economist Jörg Krämer.

"In view of the inflationary phase of 2022 and 2023, the rate step appears logical," comments LBBW analyst Martin Siegert. "An early reaction helps to limit second-round effects and stabilize medium-term inflation expectations."

USA: "Rate Cut Unlikely to Be Under Discussion"

A meeting of U.S. central bankers is scheduled for next Wednesday. This will be led for the first time by the new Fed Chair, Kevin Warsh. "The meeting should provide some concrete indications of what innovations Warsh is planning," Krämer explains. However, profound changes are unlikely to be enforceable in the short term. "A rate cut is unlikely to be seriously under discussion, as inflation risks have increased further since the last meeting in April."

Corporate Bonds: Australian Dollar in Demand

Trading in corporate bonds is currently quiet, as reported by bond trader Marcus Mielert of Oddo BHF. "At the moment, everything is macro-driven, meaning by Iran and the oil price." There is very little activity specifically in the high-yield sector. "There were also no notable new issues."

According to Beate Mägerle of Walter Ludwig Wertpapierhandelsbank, there is still significant turnover in the newly issued bond from Breiteneder Immobilien Parking Konzernfinanzierungs GmbH (AT0000A3USC0). With a maturity until 2032, it offers a coupon of 4.75 percent. Walter Ludwig is also seeing high volume in a Vonovia bond denominated in Australian dollars with a maturity until 2035 and an interest rate of 5.717 percent (AU3CB0325652). At the current price, this results in a yield of 6.5 percent.

PNE with New Bond

Furthermore, according to Mägerle, the subscription period for the new bond from the Cuxhaven-based renewable energy group PNE expired yesterday, Thursday, and begins trading today. The term runs until 2031, with the coupon set at 7 percent (DE000A460J75). The acceptance rate under the exchange offer was around 42 percent and was fully allocated. However, the placement, totaling €36m, fell below the originally targeted volume.

By Anna-Maria Borse, June 12, 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.)