The nervousness of the markets for the Brexit assumptions and concerns about economic growth, on the one hand, the race to purchases dictated by the accommodative policies of the central bank and the search for safe havens with investors who buy government bonds of solid countries, on the other. The result is that the performance of the Bund, the title of the German-year government, fell below zero for the first time in history. Yields on government debt to 10 years in Germany, in fact, have crossed the psychological threshold of zero this morning, dropping briefly to -0.004% from about 0.006% when European markets opened.
The fall in yields of ten-year German Bund, a safe haven from the 70s, triggered by the policy of negative interest rates and asset purchases by the European Central Bank, has accelerated in recent days after some weak data from United States, and surveys indicate that the vote in favor of the English for the Union ‘s output.
Germany joins as Japan and Switzerland, the first countries to have recorded yields on 10-year bonds in negative territory. To date, according to TradeWeb statistics, about 47% of government bonds in euro a yield less than zero and the country with the most exposure to negative rates is precisely Germany. According to a recent study by Commerzbank nearly two-thirds of the German sovereign debt outstanding currently offers a yield below 0.4 percent.
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