German Note Yield Drops Below Minus 0.5% as Rally Gathers Pace
- Eight-year yield falls below zero for first time since April
- Thirty-year bonds surge, pushing yield to less than 1%
Third Day of Declines for European Stocks
German government bonds jumped as disappointing U.S. data and expectations of more easing from the European Central Bank created a demand for the securities that pushed two-year yields below minus 0.5 percent for the first time.
The move spread to bonds of all maturities, with 30-year bund yields dropping below 1 percent for the first time since May, and eight-year yields turning negative for the first time since April. The bonds extended gains and European equities dropped as U.S. data showed the service industry in the world’s largest economy expanded last month at the slowest pace in almost two years. The surge came on a day when Germany’s meager yields failed to attract enough bids to reach the sales goal at a third consecutive auction of the nation’s debt.