RECORD-LOW YIELD FOR THE BUND

Finweek English Edition - - THE WEEK -

The bench­mark Ger­man gov­ern­ment debt yield hit a fresh record low of 0.033% on 8 June as the Euro­pean Cen­tral Bank (ECB) starts to buy cor­po­rate debt as part of its quan­ti­ta­tive eas­ing pro­gramme, ft.com re­ported. The pres­sure ex­tended across Euro­pean sov­er­eign debt mar­kets, with Switzer­land’s 10-year debt yield drop­ping 2 ba­sis points to 0.44%, Ital­ian 10-year yields fall­ing 2 ba­sis points to 1.32%, and UK Gilt yields de­clin­ing 1 ba­sis point to 1.26%, it said. The pres­sure was “in part due to ex­pected or ac­tual cen­tral bank buy­ing”, but also re­flected “en­trenched de­fla­tion­ary ex­pec­ta­tions”, San­jiv Shah, chief in­vest­ment of­fi­cer at Sun Global In­vest­ments, was quoted as say­ing by ft.com.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.