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European markets rallied sharply this week as German borrowing costs soared after the country’s new leaders announced a historic deal to loosen its “debt brake” rule to boost spending on defense.
The interest rate on German government bonds saw their biggest daily increase since October 1998.
The Dax 30 index, which tracks the largest German companies, rose by 3.5% as stock prices also leapt in other European markets amid hopes that a massive boost in European spending on defense and infrastructure would kickstart the region’s lagging economy.
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