German Bunds rally as Italian yields spike

Freitag, 08. Februar 2019 16:27

Significant losses on stock exchanges in the Eurozone on Friday, for the third day in a row, pushed investors toward benchmark sovereign debt. German securities jumped, which means yields declined, but Italy's yields sharply jumped amid a political dispute with France. The government in Rome was also criticized by other member states of the European Union after Deputy Prime Minister Luigi Di Maio met with protesters from the Yellow Vests movement.

Matteo Salvini, the other deputy prime minister, today suggested France must return “terrorists” wanted by Italy. Industrial production in the country, which is in a technical recession, dropped 5.5% on an annual scale in December.

Germany's two-year yield slipped to a negative 0.579% at 4:22 pm CET. The measure for the ten-year Bund fell 3.3 basis points to 0.084 and the 30-year yield tumbled 2.8 points to 0.702%. Corresponding futures advanced 0.01%, 0.21% and 0.45%, respectively. Italy's two-year yield spiked 12.1 points to 0.972%. The 10-year yield surged 4.2 points to 2.996% after touching 3.023% for the first time since December 11. The 30-year gauge rose two points to 3.815%.

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