German, British bonds rise as stocks tumble

Friday, 17. May 2019 13:22

European stocks retreated on Friday, reversing some of three-day gains against the backdrop of renewed fears of a disorderly Brexit, turning investors tobenchmark sovereign bonds and the yen, another safe haven asset. On the flipside, gold was struggling for gains. The Labour Party terminated negotiations with the government about a joint bill and the United Kingdom's Prime Minister Theresa May is looking at a forced resignation. Of note, core inflation in the Eurozone was revised slightly higher for April.

The yield on the two-year notes issued by the government in Berlin rose, sending the yield 1.7 basis points lower to a negative 0.652% at 1:20 pm CET. The ten-year Bund yielded 0.111% below zero or 2.1 basis points less for the day, compared to the fall of 1.1 points to 0.531% for the 30-year bonds. Corresponding futures added 0.01%, 0.13% and 0.21%, respectively, in price.

The UK's two-year yield weakened 3.2 points to 0.703%. The ten-year measure declined 4.4 points to 1.031% and the yield on the 30-year bonds dropped 3.6 points to 1.584%. The ten-year United States Treasuries yielded 2.379%, a decrease of 1.3 points.

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