Rise in Bunds eases but trade war fears persist

Monday, 06. May 2019 17:50

German sovereign debt securities jumped on Monday, pushing yields lower amid a search for safety as the United States opted for an escalation in bilateral disputes with China, but the move was partly reversed toward the end of the session. The government in China expressed determination to continue negotiations about trade and issues including the protection of intellectual property.

Market sentiment showed tensions remained high as stocks in the Eurozone ended strongly in the red, though near the highest levels of the day. Trading in Britain was halted for a bank holiday and spot gold and silver were little changed and Brent oil rebounded from a one-month low.

The yield on Germany's two-year government note slipped moderately to a negative 0.589% at 3:00 pm CET. The 10-year Bund rate was 1.6 basis points lower at 0.012% and the 30-year bond yield decreased by 1.1 points to 0.661%. Corresponding futures gained 0.01%, 0.16% and 0.28%, respectively. Conversely, Italian debt sold off significantly. The yields on paper with the maturity of two, ten and thirty years rose three points to 0.468%, four points to 2.593% and 3.3 points to 3.58%, respectively.

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