German yields drop, 10-year yield hits two-week low

FXStreet (Mumbai) – The German Bund yields extended the slide on Thursday, as the investors continue to pour money into safe haven bunds on account of Greek crisis.

The 10-year yield hit a two-week low of 0.727%, before recovering slightly to 0.751%; down 6.3 basis points for the day. The losses are seen across the board in the German yield curve. At the short end, the 2-year yield is threatening to fall below -0.20%; below which the 2-year bunds would not be eligible under ECB’s QE program.

The recent rally in Bunds has now pushed yields on 6-year Bunds into the negative territory. The drop today could also have been triggered due to the fall in the treasury yields after the FOMC revised end-2016 median interest rate forecast lower.

The German Bund yields extended the slide on Thursday, as the investors continue to pour money into safe haven bunds on account of Greek crisis.

(Market News Provided by FXstreet)