The German 10-year bond yield declined to the lowest level in five months on Wednesday as coronavirus’s resurgence across the Eurozone strengthened the haven demand for the government debt.
The benchmark yield slipped to -0.586%, the level last seen on May 6, according to data source TradingView. Notably, the yield fell for the fifth straight day on Wednesday.
The threat of a prolonged and more profound Eurozone economic slowdown due to the second wave of the coronavirus and expectations for additional support from the European Central Bank has put a bid under the German government bonds, pushing yields lower.
The central bank is expected to ramp up stimulus in December to counter the recent negative Eurozone inflation.
Credit: FX Street