Bund Yields Near Two-Month Lows
Germany’s 10-year Bund yield eased to around 3.34%, touching its lowest level since August 31, as investors sought safe-haven assets amid mounting fiscal concerns and political uncertainty in France and other highly indebted eurozone economies. Meanwhile, fresh PMI data showed eurozone private-sector growth slowed to a four-month low in October, pressured by rising energy costs, higher interest rates and renewed contraction in France. Consumer confidence also deteriorated more sharply than expected. French bonds remained under particular pressure, with the spread between French OATs and German Bunds widening to around 170 basis points, its highest level since the eurozone sovereign debt crisis. Looking ahead, further demonstrations are expected across the region this weekend, while investors await next week’s inflation data and the ECB’s policy meeting, where officials are widely expected to leave interest rates unchanged.
Germany’s 10-year Bund yield eased to around 3.34%, touching its lowest level since August 31, as investors sought safe-haven assets amid mounting fiscal concerns and political uncertainty in France and other highly indebted eurozone economies. Meanwhile, fresh PMI data showed eurozone private-sector growth slowed to a four-month low in October, pressured by rising energy costs, higher interest rates and renewed contraction in France. Consumer confidence also deteriorated more sharply than expected.
French bonds remained under particular pressure, with the spread between French OATs and German Bunds widening to around 170 basis points, its highest level since the eurozone sovereign debt crisis. Looking ahead, further demonstrations are expected across the region this weekend, while investors await next week’s inflation data and the ECB’s policy meeting, where officials are widely expected to leave interest rates unchanged.