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2Y German Yields On Course For Biggest Drop Since 2008

BONDS

The German curve continues to bull steepen with Schatz yields down 26bp: German 2s10s up 5.8bp at -58.6bp (had ticked a euro-era inversion record of -70bp earlier this week).

  • Driven by US banking sector concerns reverberating globally, 2Y German yields are on pace for their biggest one-day fall since 2008 - see chart.
  • The UK curve hasn't shifted as dramatically today with 2Y yields down 23bp (23bp for 10s), almost a "routine" move during last year's mini budget crisis.

1 Day Change In German 2 Year YieldSource: BBG, MNI

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