Business World

Tuesday 25 April 2017

Germany's 10-year bond yield turns negative for first time

Berlin house prices have surged over the past year
Berlin house prices have surged over the past year

Germany's benchmark 10-year Bund yield, the benchmark for borrowing costs across the euro zone, fell into negative territory on Tuesday for the first time.

The 10-year Bund yield fell as low as minus 0.002 percent , according to data from Tradeweb.

Yields and prices move in the opposite direction so higher prices mean lower yields.

A backdrop of unprecedented monetary stimulus from the European Central Bank and mounting political risks in Europe has boosted demand for German bonds - seen as one of the safest assets in the world.

Reuters

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