AGL 40.00 Decreased By ▼ -0.01 (-0.02%)
AIRLINK 127.00 Decreased By ▼ -0.99 (-0.77%)
BOP 6.68 Increased By ▲ 0.08 (1.21%)
CNERGY 4.49 Decreased By ▼ -0.11 (-2.39%)
DCL 8.60 Increased By ▲ 0.12 (1.42%)
DFML 41.30 Decreased By ▼ -0.18 (-0.43%)
DGKC 86.71 Increased By ▲ 0.13 (0.15%)
FCCL 32.16 Increased By ▲ 0.02 (0.06%)
FFBL 64.70 Decreased By ▼ -0.72 (-1.1%)
FFL 10.29 Increased By ▲ 0.04 (0.39%)
HUBC 109.51 Decreased By ▼ -0.98 (-0.89%)
HUMNL 14.90 Increased By ▲ 0.15 (1.02%)
KEL 5.05 Decreased By ▼ -0.08 (-1.56%)
KOSM 7.40 Increased By ▲ 0.28 (3.93%)
MLCF 41.39 Decreased By ▼ -0.26 (-0.62%)
NBP 60.60 Increased By ▲ 0.51 (0.85%)
OGDC 190.00 Decreased By ▼ -4.69 (-2.41%)
PAEL 27.81 Decreased By ▼ -0.14 (-0.5%)
PIBTL 7.75 Decreased By ▼ -0.25 (-3.13%)
PPL 149.75 Decreased By ▼ -1.42 (-0.94%)
PRL 26.73 Decreased By ▼ -0.15 (-0.56%)
PTC 16.18 Increased By ▲ 0.18 (1.13%)
SEARL 86.02 Increased By ▲ 7.82 (10%)
TELE 7.72 Increased By ▲ 0.33 (4.47%)
TOMCL 35.58 Decreased By ▼ -0.09 (-0.25%)
TPLP 8.14 Increased By ▲ 0.23 (2.91%)
TREET 16.51 Increased By ▲ 0.62 (3.9%)
TRG 53.35 Increased By ▲ 0.59 (1.12%)
UNITY 26.28 Decreased By ▼ -0.27 (-1.02%)
WTL 1.26 Decreased By ▼ -0.01 (-0.79%)
BR100 9,889 Decreased By -31.1 (-0.31%)
BR30 30,611 Decreased By -140.9 (-0.46%)
KSE100 93,355 Increased By 130.9 (0.14%)
KSE30 28,931 Increased By 46 (0.16%)

Germany's benchmark 10-year bond yield moved back towards zero percent on Monday after a surprise rise in business sentiment took the edge off market fears about a dire economic outlook. Poor manufacturing activity data on Friday from Europe's powerhouse economy had pushed long-dated German bond yields below zero percent in the biggest one-day fall since the start of January.
But on Monday euro zone bond yields, which had opened higher, rose further after the March Ifo business climate index rose to 99.6 from 98.7 in February and compared with expectations for a reading of 98.5. Germany's 10-year bond yield briefly moved back into positive territory, reaching a high of 0.004 percent. It was last up 1.5 basis points on the day at minus 0.009 percent, off Friday's almost 2 1/2-year low of minus 0.03 percent.
Other core euro zone bond yields were also lifted off recent lows. "It (the Ifo) is a bit of a reprieve after the significant miss from PMI on Friday and it confirms that it is the manufacturing side of Europe or Germany which is really weighing on sentiment," said Christoph Rieger, rates strategist at Commerzbank. "It confirms it is China or the general export situation which is at the heart of the problems."
Heightened concern about the global growth outlook has pushed German Bund yields down almost 20 bps this month, in line with steep falls in the yields of other major bond markets.
Friday's German manufacturing activity survey showed a contraction for the third straight month. Preliminary measures of US manufacturing and services activity for March showed both grew at a slower pace than in February.
After Friday's US numbers, the gap between yields on three-month US Treasury bills and 10-year notes fell below zero for the first time since 2007.
That gap moved back into positive territory after the German Ifo survey.
An inverted yield curve is widely considered a leading indicator of recession, and that spread is the Federal Reserve's preferred measure of the yield curve.
Heightened uncertainty over Brexit and world trade tensions have also bolstered demand for safe-haven bonds.
On Monday, Japanese 10-year government bond yields slumped to minus 9.2 basis points, the lowest since September 2016. Australian 10-year year yields plunged to a record low of 1.754 percent.

Copyright Reuters, 2019

Comments

Comments are closed.