Risk-Off Sentiment Boosts German, U.K. Government Bonds

Dow Jones
Yesterday

0817 GMT - Low appetite for risk assets and demand for safer assets is boosting performance in some developed-market government bonds, including German Bunds and U.K. gilts, Tickmill Group's Patrick Munnelly says in a note. "Global bond markets experienced a pronounced flight-to-safety bid on Friday as escalating credit market anxiety, elevated energy prices, and political instability in France drove capital toward sovereign debt," he says. Fiscal and political uncertainty in France cause investors to reduce exposure to French government bonds. Ten-year U.K. gilt yields and ten-year Bund yields fall by 10.0 basis points and 8.5 basis points to 5.323% and 3.449%, respectively, Tradeweb data show. Ten-year French government bonds decline by less, last down 2.9 basis points at 4.897%.

 

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