German 10-year Bund yields dropped on Friday to a six-month low, approaching record-low levels of the previous year amid an outbreak of coronavirus.
The epidemic is spreading across the United States with cases in at least four new states. The prospect of a protracted global economic downturn pushed investors to seek refuge in the bond market again, whereas a slump note yields indicates a price growth due to increased demand.
In Germany, the leading eurozone economy, Bund yields register decline for the fourth consecutive week.
The yield on ten-year Bund fell to a six-month low and amounted to about 0.72 percent – only 2 bp higher than the minimum level, which reached in September last year during the trade wars between the United States and China.
Yields on two-year Bund also reached six-month lows, falling to almost -0.90 percent.
The single currency surged by 0.87 percent, against the U.S. dollar to 1,1326 at 1414 GMT.