The yield on ten-year Bund – BBC

Angela Merkel

All eyes on European markets while the ten-year Bund yield ends below zero for the first time. After yesterday, during which European stocks have burned 130 billion capitalization, the Milan Stock opened the day full of volatility, especially on bank stocks. After a very negative start, now some veer stocks in positive territory: MPS + 2.29%, + 0.62% Carige, Ubi + 1.57%, Banco Popolare + 0.84%, + 0.89% UniCredit. Remain in negative territory BPM -0.21% -0.71% and Intesa Sanpaolo.

the flight to quality

Meanwhile, there is the effect of “flight to quality” by investors and savers who, fleeing from the equity market, buy stocks State of solid countries. Not surprisingly, the performance of the Bund, the title of the German-year government, fell below zero for the first time in history. Pulling shopping fears of instability in the markets, not only for the referendum on Brexit but also to the expectations boobies decisions of the board (FOMC) of the Federal Reserve, which however will not move before the outcome in England.

So, this morning who wanted to invest in the German benchmark maturing in February 2026 it would pay 104.836 in exchange for a negative rate of 0.004%. To date, according to TradeWeb statistics, about 47% of government bonds in the euro has a less than zero yield. The country with the highest exposure to the red rates is precisely Germany with nearly 800 billion, accounting for 76% of the total. Italy has for 320 billion, equivalent to just over 20%.

June 14, 2016 (edited June 14, 2016 | 10:10)

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