Germany’s 2-year bond yield sets fresh record low

Short-dated German government bond yields set a new record low on Friday and were set for their biggest two-week fall in more than three years, highlighting demand for top-rated assets even as global bond markets take a beating.

Demand for top-rated German debt for use as collateral for short-term lending in repo markets has helped drive two-year bond yields lower this week. Jitters ahead of an Italian referendum on Dec. 4 has also bolstered safe-haven debt.

In early Friday trade, the two-year Schatz yield fell 2.5 basis points to around minus 0.76 percent, according to Reuters data. It was also set for its biggest two-week fall since July 2013, with a drop of about 14 bps.


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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell