German bonds hit new low amid rising fears of political TURMOIL

Monday, April 10, 2017
By Paul Martin

INVESTORS worried about political turmoil have pushed the yield on German government 10-year bonds lower, hitting a five-week low.

Mon, Apr 10, 2017

The yield was just 0.214 on Friday, a fall of 1.5 points.

The drop comes as uncertainties on the world stage have shaken investors as relations between Russia and the US deteriorate.

Fears ahead of the French election are also helping to boost demand for German debt – traditionally seen as a safe haven investment.

As tensions between America and Russia escalated over Syria, DZ Bank strategist Daniel Lenz said: “Safe-haven flows are always affected by political events, and when it affects countries where the U.S. and Russia are interested, then investors become even more nervous.”

Most other eurozone bond yields were lower on the day.

Elsewhere, Greece and its eurozone creditors agreed on major elements of reforms needed to unlock new loans, with a total of 2 percent of GDP of measures to be implemented in 2019 and 2020, the head of euro zone finance ministers said.

Jitters over the state of the German economy have also been raised lately with investors questioning the ability of Germany, which is the main economic force in the European Union, to withstand the loss of the UK from the bloc.

Germany’s Economics and Energy minister Brigitte Zypries admitted to Bloomberg: “Germany and Europe will be affected by Brexit.

The Rest…HERE

Comments are closed.

Join the revolution in 2018. Revolution Radio is 100% volunteer ran. Any contributions are greatly appreciated. God bless!

Follow us on Twitter