# US and German bond yields have widened to levels not seen in almost 30 years

> The spread between US and German 2-year yields reached 314 basis points on May 16, its widest since March 1989. The move followed strong US data and market bets on three to four Fed hikes this year, while euro-zone growth slowed.

- Date: 2018-05-16 · published 2018-05-16T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/65212-us-and-german-bond-yields-have-widened-to-levels-not-seen-in-almost-30-years
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Widening yield differentials pull capital toward the dollar and weigh on the euro, which can raise US export prices for euro-zone feed buyers. The effect on grain and oilseed prices is indirect and mainly runs through currency movements.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-03-01 | [US/German bond yield gap widest in 20 years on diverging policy outlooks](https://feedsoft.ai/events/66193-us-german-bond-yield-gap-widest-in-20-years-on-diverging-policy-outlooks.md) | -0.1% | -0.8% |
| DXY | 2022-09-16 | [The loonie has fallen to its lowest level in almost two years — here's why \| CBC News](https://feedsoft.ai/events/39816-the-loonie-has-fallen-to-its-lowest-level-in-almost-two-years-here-s-why-cbc.md) | +1.0% | +2.8% |
| DXY | 2023-05-31 | [German inflation drops to lowest level in more than a year](https://feedsoft.ai/events/36151-german-inflation-drops-to-lowest-level-in-more-than-a-year.md) | -0.5% | -1.0% |
| DXY | 2026-10-01 | [The Euro sells off hard as the French-German bond gap widens](https://feedsoft.ai/events/9649-the-euro-sells-off-hard-as-the-french-german-bond-gap-widens.md) | +0.2% | +0.6% |
| DXY | 2024-07-01 | [Rupee declines as uptick in US bond yields squeezes most Asian peers](https://feedsoft.ai/events/29567-rupee-declines-as-uptick-in-us-bond-yields-squeezes-most-asian-peers.md) | -0.7% | -0.1% |
| EURUSD | 2018-03-01 | [US/German bond yield gap widest in 20 years on diverging policy outlooks](https://feedsoft.ai/events/66193-us-german-bond-yield-gap-widest-in-20-years-on-diverging-policy-outlooks.md) | +1.5% | +1.1% |
| EURUSD | 2023-05-31 | [German inflation drops to lowest level in more than a year](https://feedsoft.ai/events/36151-german-inflation-drops-to-lowest-level-in-more-than-a-year.md) | -0.3% | +1.7% |
| EURUSD | 2026-10-01 | [The Euro sells off hard as the French-German bond gap widens](https://feedsoft.ai/events/9649-the-euro-sells-off-hard-as-the-french-german-bond-gap-widens.md) | -1.4% | -1.6% |

## Sources

- cnbc.com: https://www.cnbc.com/2018/05/16/usgerman-bond-yield-spreads-last-hit-these-levels-almost-30-years-ago.html

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.