27 Apr 2015
German bond yields fall on risk aversion
FXStreet (Mumbai) - The yields on the short duration and long duration German Bunds dropped on Monday as no progress over the Greek debt issue on Friday saw money flowing back to the safe haven German Bunds.
The 10-year yield dropped to 0.137%, compared to the high of 0.182% seen on Friday, while the 30-year yield fell two basis points to 0.565%. Meanwhile, the yield on 1-year, 2-year, and 3-year bonds have dropped below -0.20%, (ECB deposit rate is - 0.20%). Moreover, the ECB could not buy bonds with yields below its deposit rate under its QE program.
The Greek issue could keep the yields under pressure during the day ahead. Meanwhile, there the rumors are doing the rounds that the Brussels Group could hold a conference call today in order to shrink the gap between the negotiating parties.
The 10-year yield dropped to 0.137%, compared to the high of 0.182% seen on Friday, while the 30-year yield fell two basis points to 0.565%. Meanwhile, the yield on 1-year, 2-year, and 3-year bonds have dropped below -0.20%, (ECB deposit rate is - 0.20%). Moreover, the ECB could not buy bonds with yields below its deposit rate under its QE program.
The Greek issue could keep the yields under pressure during the day ahead. Meanwhile, there the rumors are doing the rounds that the Brussels Group could hold a conference call today in order to shrink the gap between the negotiating parties.