The German 30-year Bund yield on Friday fell below zero for the first time on record.
The yield printed a low of -0.01 before closing at 0.008, down nine basis points on the day.
If the 30-year yield finds acceptance below zero, then Germany would join Switzerland and Denmark in offering negative returns across the bond yield curve.
The German 10-year yield also hit a record low of -0.501% on Friday. It is worth noting that the European Central Bank’s (ECB) deposit rate is -0.40%.
- German 30-year yield turned negative on Friday, possibly on fears of a deeper economic slowdown.
- The entire German yield curve is close to falling into negative territory.
Our View: Euro currency will drop