The outgoing Finance Minister and new German Chancellor Minister gave a speech during the handing-over ceremony in Berlin, Germany, on December 9, 2021.
The benchmark 10-year bund yield traded in positive territory for the first time in three years on Wednesday, as the German government's borrowing costs continued to push higher.
The last time German 10-year yields were above zero was in May 2019. Negative yields meant that investors were paying the German government to lend them money.
The European Central Bank is behind the Federal Reserve and the Bank of England on its path to normalization, but surging inflation and wider moves in the global bond market have helped to push yields above zero.
Euro zone inflation hit a new record high in December. The central bank said last month that it would be cutting its monthly asset purchases, but would continue its unprecedented level of stimulation.
The bond market is usually the focus of central bank policy during times of financial stress. The cost of borrowing for the government is lowered when the central banks buy up bonds, as well as the interest rates on loans and mortgages.
The bounceback from the coronaviruses has seen consumer prices go up. The central banks are trying to cool down inflation. The Bank of England hiked rates.
The surge in energy prices has pushed inflation higher, as well as supply shortages in products like Semiconductor. The factors have had an effect on Germany's GDP figures.
The German economy grew in the year. The country's statistics office said that the economy has not yet returned to pre-covid levels.
There were signs that the German economy could be hit by supply chain issues. In October, the country's leading research institutes slashed their forecasts for growth. The German government lowered its expectations for the year.
This article was contributed to by CNBC's Silvia Amaro.
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