(June 10 Reuters) Europe's benchmark government bond, the 10-year German Bund, had a zero yield firmly in its sights on Friday as worries about a potential British exit from the EU and weakened U.S. rate hike expectations extended the week's global bond rally.
Investors sought refuge in safe-haven assets amid festering concerns over the June 23 Brexit referendum, though the appeal of ultra-low borrowing costs and a ninth week of gains for oil in the last ten kept world stocks positive for the week.
However, MSCI's 46-country All World index was down 0.4 percent for the day. Europe and its banks and commodity stocks fell 0.9 percent early on after Asia ended an otherwise solid week 1 percent lower.
it was bond markets though that demanded the attention as Germany's 10-year Bund yield inched to a new record of 0.022 percent and zero looming large.
"It is the combination of the renewed Brexit concerns and last week's weak payrolls that have reduced Fed (rate hike) expectations," said UniCredit strategist Luca Cazzulani in Milan.
Click on the link below to see the full story from Reuters: (by Marc Jones; Editing by Dominic Evans)