Economic news

Euro zone bond yields slump on high demand for safer assets

On Friday the 30-year German government bond yield went into the red without precedent, leaving the eurozone part's whole earning curve in the negative area as traders stuck to safe-haven.

euPhoto: Flickr

Key govt interest yield fell roughly on Friday to struck new the lowest ever level after Donald Trump finished an exchange ceasefire with China and imposed taxes on another $300 billion of its production, inciting a sell-out in worldwide stocks and providing back-up for safer assets.

A morning rally in German govt bonds which cited the income on its 10-year note slumped underneath - 0.50 bps without precedent boosted as exchanging dragged along.

Germany's 30-year bond income lost over eight bps to slightly hit — 0.004 percent.

TradeWeb figures on Thursday demonstrated that the pool of eurozone govt bonds with negative income flooded in July to 4.8 trillion euros or around 60 percent of the total, the most elevated extent since August 2016.

The quota of eurozone govt bond yields exchanging beneath the ECB's — 0.4 percent deposit rate of interest has additionally gained, growing to 42 percent from 36 percent last month.

Donald Trump stated on Thursday he would set fresh taxes on Chinese production, frightening traders about emerging exchange issues and empowering a solid move into safer assets.

The declaration on Thursday stretches out Trump's exchange taxes to the majority of the Chinese products the U.S. imports and denotes a rough end to a brief ceasefire in an exchange war that has harmed global development and disturbed worldwide supply chains.

China's Ministry of Foreign Affairs stated on Friday it should take counter efforts and doesn't need a trade row, yet isn't frightened of battling one.

Experts state the taxes growth weight on the U.S. Fed to ease approach, with the market currently betting in a 60 percent possibility of a 50 bps lice by the October meeting. The Fed trim key benchmark rate by 25 basis point without precedent since 2008 on Wednesday.

Other major euro zone bond yields were around five bps lower.

U.S. non-farm payrolls figures and industrial facility orders will be highly anticipated and could provoke an inversion of the rough declines recorded in morning exchange.

On Friday at 1345 EST (1745 GMT) U.S. President is expected to deliver a trading statement with the EU, in light of daily White House agenda.


To leave a comment you must or Join us


More news


Back to economic news list

By visiting our website and services, you agree to the conditions of use of cookies. Learn more
I agree