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15 May 2015
German bund yields drop, Treasury yields follow suit
FXStreet (Mumbai) - The benchmark German bund yield has dropped, extend the losses witnessed in the previous session, thereby pulling the treasury yields lower.
10-year drops, 2-year moves back above -0.20%
The yield on the benchmark 10-year German bund 3 basis points (bps) to 0.67%, while the two-year yield stayed resilient at -0.184%. Moreover, the two-year yield has moved back above -0.20%, which is the ECB threshold (deposit rate) for bonds to be included under its QE program.
Meanwhile, the US Treasuries also followed suit, with long-end witnessing losses and short-end witnessing resilience. The 10-year treasury yield fell 3.5 bps to 2.204%, while the 30-year yield fell 5 bps to 2.999%. At the short-end, the two-year stayed largely unchanged at 0.544%.
The German-US correlation has strengthened as the bunds have been preferred as safe haven assets over th treasuries off-late since they form the highest part of the ECB’s QE program.
10-year drops, 2-year moves back above -0.20%
The yield on the benchmark 10-year German bund 3 basis points (bps) to 0.67%, while the two-year yield stayed resilient at -0.184%. Moreover, the two-year yield has moved back above -0.20%, which is the ECB threshold (deposit rate) for bonds to be included under its QE program.
Meanwhile, the US Treasuries also followed suit, with long-end witnessing losses and short-end witnessing resilience. The 10-year treasury yield fell 3.5 bps to 2.204%, while the 30-year yield fell 5 bps to 2.999%. At the short-end, the two-year stayed largely unchanged at 0.544%.
The German-US correlation has strengthened as the bunds have been preferred as safe haven assets over th treasuries off-late since they form the highest part of the ECB’s QE program.