Germany’s 10-year-bund yields fell after FED decision

The German bunds rallied Thursday after the United States Federal Reserve left interest rates unchanged and downgraded the economic outlook, encouraging investors to seek safe-haven assets.

At its two-day meeting, ended on Wednesday, the U.S. central bank held its target range on short-term rates unchanged at 0.25 percent to 0.50 percent, leaving the door open for a possible rate increase in December.

The yield on the benchmark 10-year bond, which moves inversely to its price, fell 5-1/2 basis points to -0.045 percent, two-week low, the yield on long-term 30-year note dipped 7 basis points to 0.520 percent and the yield on short-term 2-year bond slid 1 basis point to -0.669 percent.

Down even the Spanish ten-year rates, which lost six basis points to 0.94%, while Italian BTP six basis points, in this case, falling 1.22%.