European Bond Grinch Steals the Trump Trade
Yields on 10-year German sovereign bonds fell to lowest level on Thursday since the U.S. election
An end-of-year rally in European bonds is confounding expectations that the era of low global interest rates would end in 2017.
Yields on 10-year German sovereign bonds fell to 0.183% Thursday, according to Tradeweb, the lowest since the U.S. election on Nov. 8. The move was mirrored by U.K. 10-year gilts, which traded at 1.240%, also edging down to their level before Donald Trump’s victory. Falling yields mean rising prices.
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