Germany's bonds soar as yields hit record lows

Friday, 02. August 2019 17:12

Investors flocked to safe haven assets on Friday in Europe, dumping stocks and turning to the government bonds with the lowest risk and the yen and Swiss franc. Germany's sovereign securities benefited from a surge in demand together with equivalents issued in London and Washington. As the price of debt rallied, yields were pushed to all-time lows again and this time the entire curve turned negative for the Eurozone's biggest economy, all the way to 30-year maturity.

The German two-year yield was 0.1 basis points down at a negative 0.782% at 5:04 pm CET. Today it hit 0.797%. The 10-year rate plunged 3.5 points to minus 0.483% following a dip to nearly 0.5% under zero. The 30-year gauge nosedived 6.7 points to 0.029% after slipping below neutral below the first time. Corresponding futures were flat for the first two benchmarks and the last one jumped 0.69%.

The British yield on debt due ten years dropped 2.3 points to 0.572%. The session low, 0.535%, wasn't touched on a closing basis in three years. The US 10-year Treasury yield fell 2.8 points to 1.868% and the futures price for the notes advanced 0.23%.

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