30 Apr 2015
German 6-year yield returns to positive territory, for how long?
FXStreet (Mumbai) - The yield on the German 6-year Bund yield now trades at 0.046% as the Bund prices crashed after large bond fund managers called for a sell-off in Bunds.
Negative yield on 5-year Bunds
Germany now has negative yields on bonds maturing up to five years. The sell-off in the bond prices has been intense in the last few days. As of April. 17th, even the 9-year yield had dipped to a low of -0.006, while the 10-year yield back then hit a record low of 0.0419%, a yield which is similar to the one seen on the 6-year Bund today.
It remains to be seen if the recent sell-off in the bond prices in Germany lasts, especially since the Greece issue is sure to haunt the markets once again. The safe haven German Bunds could once again rally. Meanwhile, the Bunds are also the biggest component of the European Central Bank’s QE program.
Negative yield on 5-year Bunds
Germany now has negative yields on bonds maturing up to five years. The sell-off in the bond prices has been intense in the last few days. As of April. 17th, even the 9-year yield had dipped to a low of -0.006, while the 10-year yield back then hit a record low of 0.0419%, a yield which is similar to the one seen on the 6-year Bund today.
It remains to be seen if the recent sell-off in the bond prices in Germany lasts, especially since the Greece issue is sure to haunt the markets once again. The safe haven German Bunds could once again rally. Meanwhile, the Bunds are also the biggest component of the European Central Bank’s QE program.