DAX Slips As Bond Yields Rise

German stocks edged lower on Wednesday as U.S. Treasury yields hit new highs amid heightened expectations of a rate hike by the Federal Reserve.

U.S. 10-year and five-year Treasury yields held near two-year highs, while the German 10-year bond yield rose above 0 percent for the first time since May 2019.

Meanwhile, Germany’s consumer price inflation in 2021 hit its highest level in almost 30 years mainly due to the high monthly inflation rates in the second half of the year, Destatis said earlier today.

Consumer prices increased 3.1 percent in 2021 after rising 0.5 percent in 2020. A higher year-on-year rate of price increase than in 2021 was last measured in 1993, when prices were up 4.5 percent.

In December, consumer price inflation rose to 5.3 percent from 5.2 percent in November. The rate came in line with the preliminary estimate published on January 6.
The benchmark DAX dipped 30 points, or 0.2 percent, to 15,742 after having lost 1 percent the previous day.

Leoni shares plunged 10.5 percent. The provider of energy and data management solutions for the automotive industry said that searches were carried out at the company sites, as part of investigations by the German Federal Cartel Office into various cable manufacturers and other industry-related companies.