On Wednesday, 10-year German bonds saw the worst day since March 1990 — just months after the fall of the Berlin Wall.

Germany's government bonds staged a historic selloff on Wednesday, as investors braced for the government to break with decades of balanced-budgeting in an effort to revive the economy and bolster military defenses.

German bonds extended their rout, with debt markets around the world sliding in the wake of Berlin’s historic plan to unlock hundreds of billions of euros for defense and infrastructure.

German bonds are on track to see their worst day since the months that followed the fall of the Berlin Wall as a spending plan to use €500B to boost growth and increase defense and infrastructure investments is unveiled.