Yields across entire German bond market dip below zero

For first time ever

LONDON, Aug 3, (RTRS): Yields across the entire German government bond market dipped into negative territory on Friday for the first time ever, as investors scrambled to buy less risky assets after an escalation in the USChina trade conflict.

Core eurozone government bond yields hit record lows after US President Donald Trump abruptly ended a trade truce with China, announcing tariffs on another $300 billion of its goods which prompted a selloff in global equities.

Germany’s 30-year bond yield briefly dropped more than eight basis points to -0.006%, its first fall below zero, and was last at 0.015%. It had been as high as 0.89% as recently as January.

The yield on the benchmark German 10-year note marked new ground with a fall below -0.50 bps.