13 Jul 2015
Greek deal pushes money out of German Bunds
FXStreet (Mumbai) - Greek deal news is pushing money out of the safe haven German Bunds and into the periphery bonds, thereby pushing the German yields higher and periphery yields lower.
Safe haven trade unwinds
The yield on the 10-year Geman Bund now trades 4.4 basis points higher at 0.938%. The Italian 10-year yield is down 4 basis points at 2.10%, while the Spanish 10-year yield is down 3.4 basis points at 2.094%.
The investors are ditching the safe haven assets after the EU President Donald Tusk said the EU summit has unanimously reached an agreement with Greece. Greek PM Tsipras now needs to get the reforms passed in his parliament.
Other safe haven assets – treasuries, CHF, JPY – have also weakened as the risk sentiment returned after Greek deal news.
Safe haven trade unwinds
The yield on the 10-year Geman Bund now trades 4.4 basis points higher at 0.938%. The Italian 10-year yield is down 4 basis points at 2.10%, while the Spanish 10-year yield is down 3.4 basis points at 2.094%.
The investors are ditching the safe haven assets after the EU President Donald Tusk said the EU summit has unanimously reached an agreement with Greece. Greek PM Tsipras now needs to get the reforms passed in his parliament.
Other safe haven assets – treasuries, CHF, JPY – have also weakened as the risk sentiment returned after Greek deal news.