German ten-year yield falters to all-time low

Friday, 31. May 2019 11:35

Benchmark government bonds continued higher on Friday, pressing yields deeper amid a strong shift into risk aversion after the announcement by the United States that it would introduce and gradually increase import tariffs for merchandise from Mexico if the dispute over illegal immigration isn't solved.

The ten-year yield on German sovereign debt securities fell to a negative 0.209% for the first time. The measure has been below zero for most of the past month. The DAX stock index crumbled 1.91% at 11:36 am CET to 11,674.65 points, the weakest mark since April 2. Wirecard bled the most, 11.03%. Car producers followed, mirroring the slump suffered by peers in the Asian session.

The two-year rate was down by 3.8 basis points at 11:40 am CET, at minus 0.675%. The ten-year Bund yield retreated 3.6 points to 0.207% under the neutral level. The yield on the 30-year bonds plummeted 3.8 points to 0.432%. Corresponding futures surged 0.04%, 0.21% and 0.68%, respectively. Yields for British maturities of two, ten and thirty years slumped four points to 0.633% or a 16-month low, 3.9 to 0.862%, and 3.8 points to 1.453%, respectively. The last two were 32-month lows.

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