18 Jun 2015
German yields drop, 10-year yield hits two-week low
FXStreet (Mumbai) - The German Bund yields extended the slide on Thursday, as the investors continue to pour money into safe haven bunds on account of Greek crisis.
The 10-year yield hit a two-week low of 0.727%, before recovering slightly to 0.751%; down 6.3 basis points for the day. The losses are seen across the board in the German yield curve. At the short end, the 2-year yield is threatening to fall below -0.20%; below which the 2-year bunds would not be eligible under ECB’s QE program.
The recent rally in Bunds has now pushed yields on 6-year Bunds into the negative territory. The drop today could also have been triggered due to the fall in the treasury yields after the FOMC revised end-2016 median interest rate forecast lower.
The 10-year yield hit a two-week low of 0.727%, before recovering slightly to 0.751%; down 6.3 basis points for the day. The losses are seen across the board in the German yield curve. At the short end, the 2-year yield is threatening to fall below -0.20%; below which the 2-year bunds would not be eligible under ECB’s QE program.
The recent rally in Bunds has now pushed yields on 6-year Bunds into the negative territory. The drop today could also have been triggered due to the fall in the treasury yields after the FOMC revised end-2016 median interest rate forecast lower.