Bund Germany: new historical record low

The yield on German 10-year Bund retouchs historic low. The record marked yesterday with an interest of 0.47% has been canceled today at the start of trading on European markets. The yield on the Bund falls to 0.33% and approaches the fateful zero.

All government bonds of the euro area are well procured from a few sessions but not with the intensity of the German 10-year. Meanwhile, today part of the plan purchases of corporate bonds non-bank by the ECB as part of the Qe and with the goal of bringing in 80 billion euro monthly purchases. Among the operators some fear that the Eurotower not reach at least 5 billion of corporate bonds and the level below € 3 billion would be read as a failure.

The substantial purchases on the Bund reflect the reduction of government bonds that can be purchased under the Qe. The stakes are not lower yielding 0.40% and the ceiling of 30% of the emission credits. The German securities with maturities up to five years are out of Qe, the Bund to six years with a negative return of -0.353% skim the limit established by the ECB.