Eurozone bond yields drop, Spanish 2-yr yield in negative

FXStreet (Mumbai) – Borrowing costs across the Eurozone dropped as the European Central Bank (ECB) boss Mario Draghi gave a hint that the bank could step up its efforts in December to battle deflation.

The interest rate on German 10-year bond yields fell to a four-month low of 0.496%. The 2-yr yield hit a record low in the negative territory. The yield on the Spanish 2-yr bonds also dropped below zero for the first time. It currently trades around -0.008%.

The German yields have improved slightly today, but remain closer to four-month lows. The spread between the US and German 10-yr bond yield spread now stands at 153 basis points compared to 143 basis points seen coupled of days ago.

Borrowing costs across the Eurozone dropped as the European Central Bank (ECB) boss Mario Draghi gave a hint that the bank could step up its efforts in December to battle deflation.

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