Bund Yields Are on Their Way Back to 0%: Euro Rates Daily
- German 10-year yield moves up out of its trading range
- Many conditions would still have to be met for higher yields
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The sell-off in European core government bonds means 0% for German bund yields is no longer looking so far away.
Yields increased 17 basis points in December to halve their negative level, after climbing in previous months from record lows, and another such move would take them near the zero mark. However, the reduction in political uncertainty due to the phase-one trade agreement between China and the U.S. and the prospect of an orderly Brexit may not be sufficient to drive yields into positive territory on a sustained basis.