Germany 12-year Pfandbrief (covered bond) yield
Germany 12-year Pfandbrief (covered bond) yield stood at 3.96% on Oct 16, 2026, according to Deutsche Bundesbank. It is one of the indicators in the Bond yields and yield curves (daily) table (Value · Daily), with a complete series running from Jan 7, 2004 to Oct 16, 2026. The complete series with an interactive chart, free to download.
This indicator in the Bond yields and yield curves (daily) table
| Indicator | 16-10-2026 | 15-10-2026 | 14-10-2026 | 13-10-2026 | 12-10-2026 | 09-10-2026 | 08-10-2026 | 07-10-2026 | 06-10-2026 | 05-10-2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Pfandbrief yield curve | |||||||||||
| Residualmaturity of 12.0 years | 3.96 | 3.94 | 3.99 | 3.98 | 4 | 4.01 | 4.04 | 4.03 | 4.01 | 4.02 | |
| Residualmaturity of 13.0 years | 3.99 | 3.96 | 4.01 | 4.01 | 4.03 | 4.03 | 4.07 | 4.05 | 4.03 | 4.05 |
Understanding germany 12-year Pfandbrief (covered bond) yield
Highlighting the expected return on long-dated German covered bonds, this metric identifies the theoretical interest rate for collateralized bank financing with a residual maturity of 12.0 years. The derivation utilizes an econometric model to process the secondary market pricing of Pfandbriefe, instruments heavily safeguarded by statutory overcollateralization requirements. Pushing further into the extended duration spectrum, this point absorbs significant long-term macroeconomic uncertainty, differentiating itself from the more heavily trafficked benchmarks. The calculation strictly isolates covered bank issuance, explicitly removing any influence from central government treasuries or standard, unsecured corporate debt.
Correct application of this series involves analyzing the gradual steepening or inversion of the long end of the curve rather than reacting to unadjusted, daily yield fluctuations. The data points represent finalized statistical estimates and are not subjected to seasonal smoothing or historical revision, though users should be mindful of minor pricing gaps caused by illiquidity in ultra-long bond trading. Assessing the metric on a year-on-year basis smooths out the substantial daily noise generated by algorithmic trading, revealing truer shifts in long-term institutional funding appetite. A critical error is assuming this modeled yield perfectly aligns with executable secondary market prices, as the mathematical smoothing process must bridge significant maturity gaps in this less liquid segment.
Frequently asked questions
- How does overcollateralization protect the investor?
- The legal framework mandates that the value of the cover pool must always exceed the total value of the outstanding bonds, providing an extra buffer against defaults.
- Are these yields influenced by inflation expectations?
- Yes, at this extended horizon, anticipated long-term inflation is a major component of the duration premium demanded by investors.
- Does the statistical model use data from international covered bonds?
- The estimation is strictly confined to domestically issued bonds that comply with the precise statutory requirements of the local jurisdiction.