Germany’s Bond Advance Sends 2-Year Note Yield Below Zero
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German bond gains sent the two-year rate below zero for the first time since May 2013 and 10-year yields to an all-time low as the European Central Bank kept interest rates at a record low today.
German securities have rallied this year, with higher returns than stocks, as the ECB cut borrowing costs and introduced stimulus measures including targeted longer-term loans to banks to try to counter the threat of deflation. Now they’re extending gains with bonds from Austria to Finland as investors seek haven assets after Russia massed troops along its border with Ukraine and data points to slower growth in the 18-nation currency bloc.