Bond Market Splits Over Deutsche Bank Woe With Periphery Shunned
- Germany’s 10-year bond yields fall to lowest since July
- Investors look to core bond markets as European stocks slip
Deutsche Bank Adds Fear of Contagion to Markets
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Renewed turmoil in Europe’s banking shares is splitting the region’s bond market.
Securities from higher-rated nations climbed as investor uneasiness about Deutsche Bank AG’s financial footing sparked demand for the safest assets at the expense of those from more indebted nations. Germany’s 10-year bond yield fell to the lowest since July and Finland’s dipped below zero for the first time. The euro area’s periphery missed out on the rally as traders focused on political risk in these nations.