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LONDON: German government bond yields fell to the lowest levels in more than two years on Wednesday, as slowing Chinese growth, trade war tensions and noisy Italian budget talks sent investors scurrying for safe assets.

Germany's 10-year govt bond yield extended earlier falls and was five basis points lower at -0.12pc, its lowest since Oct 2016, while its 30-year bond yield slipped 7 bps to 0.50pc.

The rally in US 10-year bonds also gathered pace as New York markets opened, with yields falling five bps to a new seven-week low of 2.37pc.

The three-month/ten-year US Treasury yield curve inverted again, with the three-month rate now at 2.41pc.

Copyright Reuters, 2019

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