Search

Since the middle of the 2000s, the German 10-year government bond has been generally accepted financial benchmark of the Eurozone. The article analyzes the institutional structures that have contributed to German 10-year bonds becoming the unquestioned Eurozone benchmark and the institutional privileges with which this central position on the financial markets is attended. The aim of this article is to understand why German bonds became the benchmark of the Eurozone and how it affects the structure of the financial markets today. By doing so, this article seeks to develop an institutional understanding of the power structure on the financial markets. It will be shown that that Germany's benchmark status is not the result of economic factors, but of ongoing cognitive and normative discourses. The article complements the economic approach with an institutional perspective. It also complements the political science debate, which has thus far primarily concentrated on the economic and political consequences of a high spread. [ABSTRACT FROM AUTHOR]