12 Feb 2015
German 2-year Bund yield falls to record low
FXStreet (Mumbai) - The German two-year Bund yield fell to a record low of -0.223%, after the official data in Germany showed the cost of living declined for the third consecutive month.
Falling prices and Greece-led uncertainty weighs on yields
The German CPI contracted 0.4% year-on-year in January, beating the estimated fall of 0.3%. The data indicates the economy continues to slip into deflation, which pushed the yields lower. Furthermore, the German bond markets are beneficiary of safe haven flows amid Greek debt issue. The talks between Eurogroup and Greece failed to deliver a concrete deal yesterday. Therefore, attention now shifts to next Monday, when another Eurogroup meet is scheduled in Brussels. Till then, the Greece-led uncertainty is likely to keep the German yields under pressure.
Meanwhile, the 10-year yield in Germany has slipped 1.5 basis points to 0.343%, while the 30-year yield is down 2.4 basis points to 0.869%.
Falling prices and Greece-led uncertainty weighs on yields
The German CPI contracted 0.4% year-on-year in January, beating the estimated fall of 0.3%. The data indicates the economy continues to slip into deflation, which pushed the yields lower. Furthermore, the German bond markets are beneficiary of safe haven flows amid Greek debt issue. The talks between Eurogroup and Greece failed to deliver a concrete deal yesterday. Therefore, attention now shifts to next Monday, when another Eurogroup meet is scheduled in Brussels. Till then, the Greece-led uncertainty is likely to keep the German yields under pressure.
Meanwhile, the 10-year yield in Germany has slipped 1.5 basis points to 0.343%, while the 30-year yield is down 2.4 basis points to 0.869%.