19 Jun 2015
German 4-year yield back in negative territory, safe haven demand weighs
FXStreet (Mumbai) - The rise in demand for the safe haven German bunds has pushed the yield on the 4-year German bund back into the negative territory.
Two-year yield dips below ECB’s despite rate
The 4-year yield currently trades at 1.3 basis points lower at -0.008, after having hit a low of -0.0024%. The 2-year yield hit a low of -0.207%, removing its eligibility under the ECB’s QE program.
Meanwhile, the benchmark 10-year yield is down three basis points at 0.775%, after having recovered from the low of 0.752%. The losses are seen across the yield curve.
Though the 4-year yield dipped into the negative territory, it is still a far cry from the yield curve seen in late March/early April when the yield on the 9-year bunds fell below zero, while the 10-year yield hit a low of 0.049%.
The yields could remain under pressure as we head into the weekend with no end to Greek impasse. An energy EU meeting is scheduled on Monday, although EU’s Dombrovskis has already stated a very low possibility of a deal in one day on Monday.
Two-year yield dips below ECB’s despite rate
The 4-year yield currently trades at 1.3 basis points lower at -0.008, after having hit a low of -0.0024%. The 2-year yield hit a low of -0.207%, removing its eligibility under the ECB’s QE program.
Meanwhile, the benchmark 10-year yield is down three basis points at 0.775%, after having recovered from the low of 0.752%. The losses are seen across the yield curve.
Though the 4-year yield dipped into the negative territory, it is still a far cry from the yield curve seen in late March/early April when the yield on the 9-year bunds fell below zero, while the 10-year yield hit a low of 0.049%.
The yields could remain under pressure as we head into the weekend with no end to Greek impasse. An energy EU meeting is scheduled on Monday, although EU’s Dombrovskis has already stated a very low possibility of a deal in one day on Monday.