Right now, this portfolio is worth around € billion and is invested exclusively in fixed-interest covered bonds denominated in euro. Besides this, in its role as a fiscal agent, the Bundesbank holds portfolios for external public sector clients such as central government and a number of federal state governments, which involves managing amounts in the high two-digit billions.
For example, if labor market conditions remain tight and the number of people who wish to work as non-regular employees -- whose increase has caused a slackening of the labor market -- begins to decrease, it is likely that wage growth will accelerate, leading to a rise in prices through the passing of cost increases on to sales prices.