FRANKFURT (dpa-AFX) – German government bonds rose sharply on Monday. The futures contract Euro Bund Future rose by 1.84 percent to 140.80 points by the evening. The yield on ten-year Bunds fell below the two percent mark. At 1.92 percent, it was well below its eleven-year high of 2.35 percent.
Investments that were perceived as safe, such as federal securities, were initially popular due to the gloomy mood on the financial markets. economic data from euro zone were weak: Industrial sentiment fell to its lowest level in just over two years, according to S&P Global. The combination of a shrinking industrial sector and rising inflationary pressure will continue to increase economic concerns in the euro zone, commented S&P chief economist Chris Williamson.
In the afternoon, weak economic figures from the USA were added. Both survey values from the industry and figures from the real estate market, which was counted anyway, disappointed expectations. Apparently, the high interest rate expectations of the US Federal Reserve were dampened by the data, which was reflected in falling capital market interest rates. In return, bond prices rose.
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