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Global Bonds Extend Gains as Recession Concerns Take a Firm Hold

  • Traders focus on increasing growth fears in US, Germany and UK
  • Volatility remains elevated with inflation data due Wednesday
Updated on

Global bonds climbed for a second day, sending German benchmark borrowing costs tumbling to the lowest since May as investors sought out havens amid mounting fears of a recession.

The benchmark 10-year Treasury yield fell to as low as 2.89% -- well below the closely watched psychological level of 3% and back where it was before Friday’s stronger-than-anticipated US jobs data. Germany’s 10-year yield slid to a six-week low after investor confidence in the economy slumped to the lowest since 2011, while the euro came within a whisker of falling to parity against the dollar for the first time in 20 years. UK borrowing costs tumbled as much as 14 basis points and the pound plumbed fresh lows against the dollar.