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29 Dec 2014
German 10-yr Bund yield hits record low on safe haven flows
FXStreet (Mumbai) - With Greece facing a political turmoil which may bring back the Euro crisis, investors have begun flooding their money into the safe haven German Bunds.
The 10-yr German Bund yield fell to a record low of 0.563% after the Greek presidential voting failed for the third time today, leading to snap election in the next month. A victory for anti-bailout party Syriza, may bring back Euro crisis by putting an end to Greek’s fiscal reforms and bailout program. Hence, the safe-haven flows have pushed the German 10-yr yield to record lows, while the Greek 3-yr yield hit a record high of 11.17%. The 10-yr yield in Greece also shot up to 8.625%.
Moreover, the benchmark bond yields across the Eurozone are already trading near record lows in anticipation of the announcement of a sovereign QE program by the European Central Bank.
The 10-yr German Bund yield fell to a record low of 0.563% after the Greek presidential voting failed for the third time today, leading to snap election in the next month. A victory for anti-bailout party Syriza, may bring back Euro crisis by putting an end to Greek’s fiscal reforms and bailout program. Hence, the safe-haven flows have pushed the German 10-yr yield to record lows, while the Greek 3-yr yield hit a record high of 11.17%. The 10-yr yield in Greece also shot up to 8.625%.
Moreover, the benchmark bond yields across the Eurozone are already trading near record lows in anticipation of the announcement of a sovereign QE program by the European Central Bank.