Europe’s benchmark government bond, the 10-year German Bund, had a zero yield firmly in its sights on Friday as worries about a potential British exit from the EU and weakened U.S. rate hike expectations extended the week’s global bond rally.
Investors sought refuge in safe-haven assets amid festering concerns over the June 23 Brexit referendum, though the appeal of ultra-low borrowing costs and a ninth week of gains for oil in the last ten [O/R] kept world stocks positive for the week.
However MSCI’s 46-country All World index was down 0.4 percent for the day. Europe and its banks and commodity stocks fell 0.9 percent early on after Asia ended an otherwise solid week 1 percent lower.
It was bond markets though that demanded the attention as Germany’s 10-year Bund yield inched to a new record of 0.022 percent and zero looming large. [EUR/GVD]
Read More: http://www.reuters.com/article/us-global-markets-idUSKCN0YW02N
Source: Reuters (10 June 2016)