German yields are on the rise

Five charts to start your day

There have been some intriguing developments in the European bond market lately. German government bonds could be heading for a major transformation, with 10-year yields potentially climbing to levels we haven't seen since the financial crisis. This shift is largely tied to Germany's ambitious plans to boost spending on defence and infrastructure, moves that might push the European Central Bank (ECB) to start hiking rates next year.

It's basic bond market dynamics at work here – when supply increases, bond prices typically fall, which naturally pushes yields higher. Combine this with potential ECB rate increases, and we've got a compelling argument for rising yields and a strengthening euro.