Germany's 10-year yield reaches all-time low

Thursday, 04. July 2019 12:58

While trading volumes on markets were subdued on Thursday amid a national holiday in the United States, investors still rushed into benchmark sovereign debt securities to reposition portfolios with regard to the world's economic slowdown. Germany's bonds continued to rally and sent yields lower in anticipation of a new round of monetary stimulus by the European Central Bank under Christine Lagarde, nominated to become president.

The yield on the two-year German note was little changed at a negative 0.76% at 12:53 pm CET. The ten-year benchmark lost two basis points to reach 0.402% under zero after going as much as 0.4 points lower than that and setting an all-time record. The 30-year rate dropped 2.1 points to 0.187%. Earlier it touched 0.183%, also an all-time low. Equivalent futures were up by 0.01%, 0.17% and 0.51%, respectively.

Britain's two-year yield gained 0.6 points to 0.571%. Conversely, the measure of the 10-year gilt fell 2.8 points to 0.665%. The session low, 0.66%, was last seen in October 2016. The 30-year yield tumbled 1.8 points to 1.298%. The yield on Italy's 10-year bond surged 4.2 points to 1.648% in spite of a deal with the European Union.

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