On Thursday European government bond yields played with record lows, as the possibility of a messy Brexit, an aggravating Sino-U.S. exchange struggle and a worldwide recession kept traders sticking to the risk-off debt.
Italian yields hit record lows on Wednesday after the 5-Star Movement and the opposition PD stated they would attempt to frame a coalition, turning away early elections and facilitating monetary vulnerability.
A few experts stated that should the worldwide background remain risk-disinclined and European bonds well wagered, the Italian rally had further to go, since traders would respect a more ground ruling coalition in Rome.
Besides German inflation numbers, eurozone consumer confidence data are expected later. Traders will search for a shortcoming that affirms anticipations the ECB will trim rates of interest one month from now and start another round of facilitating.
Bond markets all over the world have created a desolate picture the current week, with yields on 30-year U.S. Treasuries and 10-year German bunds yield both at record lows — 1.905 percent and minus 0.728 percent on Wednesday.
On Thursday, Germany 10-year yields gained 2 bp to -0.702 percent. French and Belgian bond yields edged higher too.
Italian bond yields tumbled, yet, with the 10-year yield down 4 bp during the day at 0.99 percent, over Wednesday's minimum of 0.978 percent.
The 2-year Italian yield was 4 bp weaker at -0.195 percent following falling as low as -0.22 percent the day preceding.
Anxious traders seemed prepared to jump on any gloomy news and purchase into top-rated bonds, regardless of a months-long bonds rally hauled the whole curves in Germany and Sweden into the red.