German 10 Year Bond Yields: Who Would Have Thought

German 10 Year Bond Yields: Who Would Have Thought

Jeroen Blokland  | May 31, 2019 11:56

The 10-Year German bond yield has fallen to -0.20%, very close to its all-time low back in 2016. That in itself is pretty remarkable, taking into account that worries about deflation and hence the need for quantitative easing were much bigger then than they are now. However, trade tensions are increasing after President Trump vowed to impose tariffs on Mexican imports in an effort to stop immigrants from entering the US, and their (potential) effect on global growth has sent investors fleeing to government bonds again.

In addition, with the exception of the US, none of the other major central banks have been able to meaningfully normalise monetary policy. This could mean central banks have to start up or increase quantitative easing once more, which would result in lower bond yields around the globe. But looking at the speed at which yields are currently coming down, investors might be getting just a bit ahead of themselves.

German

Jeroen Blokland

Related Articles

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+