The German government’s push to increase borrowing costs continued on Wednesday with the benchmark bund yield of the 10-year German government trading in positive territory, the first positive trade in almost three years.

In May 2019, the German 10-year yields exceeded zero for the first time since the European Central Bank’s accommodative policy began to lower interest rates. Investors effectively paid the German government for lending them money with negative yields.

ECB currently trails the Federal Reserve, Bank of England and Bank of England in normalization, however, rising inflation and other moves in global bond markets have helped push yields higher than zero.

Euro zone inflation hit a new record high in December,More questions to be asked about ECBThe central bank’s monetary policies. Last month, the central bank announced that it will be reducing its monthly asset purchases but pledged to maintain its monetary policy. unprecedented level of stimulus in 2022.

The bond market is often the focus of central bank policy during financial distress. By buying up sovereign bonds, the central banks reduce the yields. The government can then borrow less and the interest rate for loans and mortgages is lower.

This easy policy has not helped consumer prices, as the coronavirus outbreak has brought a rebound. Now, the central banks want to stop easing their stimulus in an attempt to lower inflation. Rates have been raised by the Bank of England 15 basis points.

Inflation has been driven up by rising energy prices and supply disruptions for semiconductors. This has also had an impact on Germany’s GDP.

The German economy grew by 2.7% in 2021. However, the country is statistics office said that growth was still 2% lower in 2021 than in 2019, showing that the economy has not yet returned to pre-Covid levels.

There were signs that supply chain issues could have a negative impact on the German economy in the second half 2021. The country’s top research institutions lowered their growth forecasts in October to 2.4%. These are the German government also lowered its expectations for annual growth in 2021.

—CNBC’s Silvia Amaro contributed to this article.