Government bond yields in most major economies worldwide have been flirting with all-time lows in the last few days, indicating that investors are wary of an impending recession. German and French 10-year bond yields hit record lows this week, both falling into sub-zero territory after comments from European Central Bank (ECB) official and Dutch central bank chief Klaas Knot buoyed expectations for monetary policy easing, with the aim of boosting inflation in the euro zone. Yields were then pushed down further by bets that potential ECB chief Christine Lagarde will maintain a dovish stance to buoy the euro zone economy.
Bond yields move inversely to their prices. On Thursday, the yield on the 10-year German bund, an important benchmark for European fixed income assets and viewed as a safe haven for investors, was down at -0.398%. Meanwhile, French 10-year bond yields had fallen to -0.12%, Belgian 10-year yields plunged below zero for the first time ever, and Italian 10-year bond yields dropped to a 14-month low of 1.67%.
In times of uncertainty and challenging market environment, investors tend to move their investments from perceived riskier assets into safe havens like gold and government bonds. The move highlights ongoing uncertainty for the euro zone’s economy fueled by a slowdown in Germany, growing unease around Brexit and global trade tensions.
The dollar experienced a sell-off but rallied back up by the end of the week.…
The new week will be packed with economic data and decisions from key central banks.…
Despite economic factors working against the dollar, its oversold condition helped it this week or…
USDCAD: ⬇️ Sell - USDCAD reversed from key resistance level 1.4500 - Likely to fall…
Solana: ⬆️ Buy - Solana reversed from the long-term support level 113.75 - Likely to…
Adobe: ⬇️ Sell - Adobe broke round support level 400.00 - Likely to fall to…
This website uses cookies