Key Takeaways
- Germany's 30-year government bond yield recently increased by 4 basis points, reaching 3.31%, its highest level since 2011, driven by expectations of increased fiscal spending and bond issuance.
- The London Metal Exchange (LME) has announced the implementation of significant market structure reforms aimed at enhancing transparency and liquidity, with key changes set to roll out in early 2026.
- These LME reforms include the introduction of crossing rules and block trade thresholds, alongside the removal of certain booking requirements to simplify implementation for members.
Germany's long-term borrowing costs have seen a notable increase, with the 30-year government bond yield rising by 4 basis points to 3.31%. This marks the highest level for the yield since 2011, reflecting growing investor focus on Germany's anticipated surge in fiscal spending and increased bond supply. The yield had previously risen to 3.27% on August 14, 2025, also marking a 0.04 percentage point increase from the prior session. Market analysts suggest this upward trend is influenced by Germany's plans to boost economic growth and military investments.
In the commodities market, the London Metal Exchange (LME) has confirmed the implementation of its long-anticipated liquidity proposals, introducing several changes to its market structure. The LME announced plans to roll out crossing rules on LMEselect in February 2026, followed by block trade thresholds by the end of Q1 2026. These reforms are designed to boost transparency and enhance liquidity while safeguarding the unique features that serve the physical metal user base.
Following a review of responses to its April consultation, the LME has refined its proposed rules. Notably, the exchange has removed the requirement for trades exempt from block trade thresholds to be booked under a separate trade category, aiming to simplify the process for its members. Furthermore, an automated crossing solution will be made available to members before the introduction of block thresholds, which is expected to reduce operational complexity for clients. The LME also successfully launched trade-at-settlement (TAS) contracts for 3-month contracts on August 4, 2025, reporting healthy two-way quoting activity. The exchange plans to optimize tick size calibration later this year and will launch a Liquidity Provider program before implementing block trade thresholds.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.