Germany's 10-year Bund yield falls to 1-1/2 week low on haven demand

German bunds rise, pushing yields lower on haven demand.
German coalition talks collapse.

Omkar Godbole FXStreet Contributor

Following the collapse of the coalition talks, German Chancellor Merkel is left with two options - form a minority government or opt for re-elections.

The resulting political uncertainty pushed the German 10-year bund yield to a 1-1/2 week low of 0.346 percent.

Across the pond, the 10-year US Treasury yield is down 1.8 basis points to 2.336 percent. The yield curve (spread/difference between the US 10-yr yield and the 2-yr yield) flattened/narrowed to 60.5 basis points; the lowest level since Oct. 2007.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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