German Bund yields tumble to six-month

  • Bizline

Dec 9, 2018-

Yields on top-rated German government bonds tumbled to new six-month lows on Thursday, as a global equity selloff and a renewed slide in oil prices sent investors scurrying for safe-haven assets. US 10-year yields also slipped to three-month lows as traders scaled back expectations on the number of rate hikes the Federal Reserve might be able to deliver amid weakening economic data and trade conflict. In contrast, Italian bonds sold off and the gap between 10-year Italian and German bond yields widened around 20 basis points, as higher-risk assets weakened and sources said Italy’s ruling League party was resisting cuts to the 2019 budget deficit. The dash for safety was triggered by the arrest of a top executive of Chinese tech giant Huawei which renewed concern about a US-China trade conflict World stocks fell 2.5 percent. US equities ceded all their gains for the year and a pan-European European equity index suffered a 3.3 percent loss. The gloom was exacerbated by a more than 4 percent drop in oil prices after the Organisation of the Petroleum Exporting Countries ended a key meeting with no decision on crude output. It will debate an output cut on Friday with other exporters. Against this backdrop, yields on higher-rated euro zone bonds fell across the board. In Germany, the bloc’s benchmark bond issuer, long-dated yields fell more than four basis points to 0.224 percent, a six-month low.  (REUTERS)

Published: 09-12-2018 08:52

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