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German Bond Rally to Resume
World Economy

German Bond Rally to Resume

The surge in demand for sovereign debt that drove yields on German government bonds to record lows this week is poised to resume before the UK referendum on European Union membership on June 23, Bloomberg reported. While yields on the Germany’s 10-year bunds halted a three-week decline on Friday, they dropped below zero on June 14 for the first time on record, as polls swung in favor of the camp that supports Britain’s exit from the EU. This spurred investors to opt for the relative safety of debt securities from Germany, Japan, the US and Britain.

 

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