German bonds sell off
22 Mar 2019 German 10-year bond yields are negative and the US yield curve has inverted for the first time since 2007. The sell-off, seemingly on no news, has been extraordinary, affecting the entire European bond market. Yields, which move inversely to the price of the bond, briefly hit 0.8% on 10-year German debt on Thursday. Then they fell to 0.57%, but even that represents a surge from 0.1% only a few weeks ago. Ignore the stock market rollercoaster, the sell-off in bonds is what matters. Lurking beneath the recent reversal in global stock markets was a much bigger market fall: a month-long sell-off in government bonds. Since the start of the year, prices for developed-market sovereign bonds have been in decline, sending yields sharply higher. This set an uncomfortable backdrop for a key Italian auction, but the country’s debt agency squeezed through a 6.5 billion euro bond sale, pulling yields off the day’s highs. Government bond markets suffered a heavy sell-off on Thursday and early on Friday, sending the benchmark US Treasury yield above the 2.9 per cent mark again and causing the biggest reversal in UK Gilts in two years. In Europe, the 10-year German and French government bond yields rose 7 basis points
“The sell-off (for 30-year Bunds) was caused by the change in supply outlook from the German finance agency, which is forcing all yields higher in the euro area,” said Peter Chatwell, head of
Rescue Pledge Triggers Biggest Treasury Bond Rout Since 1982. 3/15/2020. Morgan Stanley Says Markets Are Bottoming So Sell U.S. Dollar · Terms of Service. 21 Aug 2019 In an unprecedented move, Germany sold 30-year bonds at a negative yield, as investors desperate for safe assets bet that further falls in 5 Mar 2020 LONDON — Germany's benchmark 10-year Bund yield fell to a new six-month low on Thursday, as sentiment in stock markets soured and 20 Aug 2019 Germany has sold a 30-year bond with a 0% interest rate for the first for a bund “tantrum” after a lack of interest in the sale led to a sell-off.
This set an uncomfortable backdrop for a key Italian auction, but the country’s debt agency squeezed through a 6.5 billion euro bond sale, pulling yields off the day’s highs.
“The sell-off (for 30-year Bunds) was caused by the change in supply outlook from the German finance agency, which is forcing all yields higher in the euro area,” said Peter Chatwell, head of Bonds, cheap bonds. Investors are still grappling with some whiplash caused by a bond sell off Wednesday, which saw the biggest one-day climb in two years for the 30-year U.S. Treasury yield. Several reasons are cited for this spike, but our call of the day comes from so-called ‘bond king’ Bill The price of government debt is falling in leading markets including the US and Germany as the recent sell-off in sovereign paper gathers steam. US Treasuries hit their cheapest level in almost four years on Monday morning, with the yield on 10-year debt hitting 2.71 per cent. Yields rise when prices fall. Selling concentrated on longer-term bonds. Prices of government bonds on both sides of the Atlantic fell Thursday after the European Central Bank signaled it would start scaling down bond purchases in 2017. The yield on the benchmark 10-year U.S. Treasury note settled at 2.391%, compared with 2.347% Wednesday. Yields rise as bond prices fall. Corporate and Municipal Sell-off. A marketwide sell-off in either corporate or municipal bonds can follow a massive sovereign debt liquidation. If investors don't trust the country's government to pay its debts, that country's corporations, states and cities become suspect as well. A sell-off occurs when a large volume of securities are sold in a short period of time. Due to the law of supply and demand, this causes a corresponding decline in the price of the security.
A government bond or sovereign bond is a bond issued by a national government, generally Over-the-counter (off-exchange) The terms on which a government can sell bonds depend on how creditworthy the market considers it to be. States bonds to have more currency risk than German bonds (since the dollar may
Treasuries’ yield spread over German securities reached a multi-decade high of 1.95 percentage points yesterday, while Italy’s widened to 1.76 percentage points, the most on an end-of-day
Ignore the stock market rollercoaster, the sell-off in bonds is what matters. Lurking beneath the recent reversal in global stock markets was a much bigger market fall: a month-long sell-off in government bonds. Since the start of the year, prices for developed-market sovereign bonds have been in decline, sending yields sharply higher.
“The sell-off (for 30-year Bunds) was caused by the change in supply outlook from the German finance agency, which is forcing all yields higher in the euro area,” said Peter Chatwell, head of Bonds, cheap bonds. Investors are still grappling with some whiplash caused by a bond sell off Wednesday, which saw the biggest one-day climb in two years for the 30-year U.S. Treasury yield. Several reasons are cited for this spike, but our call of the day comes from so-called ‘bond king’ Bill The price of government debt is falling in leading markets including the US and Germany as the recent sell-off in sovereign paper gathers steam. US Treasuries hit their cheapest level in almost four years on Monday morning, with the yield on 10-year debt hitting 2.71 per cent. Yields rise when prices fall. Selling concentrated on longer-term bonds. Prices of government bonds on both sides of the Atlantic fell Thursday after the European Central Bank signaled it would start scaling down bond purchases in 2017. The yield on the benchmark 10-year U.S. Treasury note settled at 2.391%, compared with 2.347% Wednesday. Yields rise as bond prices fall. Corporate and Municipal Sell-off. A marketwide sell-off in either corporate or municipal bonds can follow a massive sovereign debt liquidation. If investors don't trust the country's government to pay its debts, that country's corporations, states and cities become suspect as well.
Selling concentrated on longer-term bonds. Prices of government bonds on both sides of the Atlantic fell Thursday after the European Central Bank signaled it would start scaling down bond purchases in 2017. The yield on the benchmark 10-year U.S. Treasury note settled at 2.391%, compared with 2.347% Wednesday. Yields rise as bond prices fall. Corporate and Municipal Sell-off. A marketwide sell-off in either corporate or municipal bonds can follow a massive sovereign debt liquidation. If investors don't trust the country's government to pay its debts, that country's corporations, states and cities become suspect as well. A sell-off occurs when a large volume of securities are sold in a short period of time. Due to the law of supply and demand, this causes a corresponding decline in the price of the security. Two-year German bond yields, which had fallen back below -1% ahead of the easing steps, rose 5 basis points to -0.91% . Across the euro zone, bond yields gave up early falls to head higher. Investors retreat to German bonds after Wall St sell-off, Italy passes auction test. LONDON, Oct 11 (Reuters) - Investors retreated to the safety of German government bonds on Thursday, pushing down yields, as the effects of a sharp selloff on Wall Street made themselves felt across the world. German 10-year government bond yields, the benchmark for the region, turned flat on the day during the address to around 0.26 percent, coming off a one-month high of 0.276 percent hit on Friday The yield on the 10-year German bund, Europe’s benchmark bond, closed at 0.35% on Monday, 21.7 basis points higher than its lowest-ever close of minus 0.182% in July, according to Tradeweb. With the Federal Reserve widely expected to raise interest rates later this year,