German yields drop on safe haven demand

FXStreet (Mumbai) – German Bunds advanced after a Greek referendum rejected the austerity measures and boosted the haven demand for safe assets.

The yield on German 10-year Bunds, the euro area’s benchmark sovereign securities, currently trade 5.3 basis points to 0.741%. The Bunds rallied after 61% of voters backed Prime Minister Alexis Tsipras’s rejection of the bailout plan. The ‘No’ vote has increased the possibility of Grexit, which is supporting gains in the safe haven assets.

Greek and Periphery bond yields rise

The ‘No’ vote is weighing over the bond prices in Greece and other periphery Eurozonenations. Italian 10-year bond yields added eight basis points to 2.33%, the biggest increase since June 29. Meanwhile, the Greek 10-year yield rose 240 basis points to 17.254%.

German Bunds advanced after a Greek referendum rejected the austerity measures and boosted the haven demand for safe assets.

(Market News Provided by FXstreet)