World Economy

German Bonds Losing Steam

German Bonds Losing SteamGerman Bonds Losing Steam

The stellar performance in German government bonds over the past few weeks may finally run out of steam, Bloomberg reported. With markets already pricing in additional easing measures from the European Central Bank and bets on a Federal Reserve interest-rate increase this year fading, options traders are challenging the rally. Germany’s two-year note yields dropped below minus 0.5% for the first time this week, while benchmark 10-year bund yields fell to the lowest since April, when investors balking at low yields sparked a global bond selloff. German 10-year bund yields fell three basis points, or 0.03 percentage point, this week to 0.30% in London Friday, extending this year’s decline.