German, UK, US yields crash to historic lows

Thursday, 15. August 2019 13:14

As China ignored on Thursday the suggestion by United States President Donald Trump about a personal meeting with China's head of state Xi Jinping, stocks on both sides of the Atlantic resumed the drop after the worst day on Wall Street this year and investors fled to benchmark sovereign debt. Prices of securities issued by governments in London, Berlin and Washington continued to rise in a buying wave aimed at shielding value, sending yields on bonds due in ten and thirty years to new record lows. Yesterday the curves inverted both for US Treasuries and the United Kingdom's gilts.

The German ten-year yield was down 2.9 points at a negative 0.679% at 1:09 pm CET after touching minus 0.681% for the first time. The thirty-year rate cratered 5.6 points to 0.247% below zero while minutes before it was at 0.251%. Corresponding futures jumped 0.17% and 1.06%, respectively.

The yield on ten-year US notes dropped 4.9 points to 1.534%. Earlier it hit 1.515% for the first time in more than three years. The thirty-year gauge was down 4.8 points at 1.972% compared to today's historic low at 1.943%. Futures advanced 0.32% and 0.48%, respectively. The yields on British debt due in ten and thirty years fell 2.3 points to 0.425% and 6.6 points to 0.995%, respectively, after a slide to 0.414% and 0.989%.

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