German bond yield falls to new record low level
The yield on German government bonds, the eurozone benchmark, fell on Friday to a record low level only a day after reaching the previous record.
In afternoon trading, the yield on German 10-year bonds dropped to 1.640 percent and then rose slightly. On Thursday, the yield reached 1.665 percent.
The yield on US benchmark bonds also hit a record low level on Friday of 1.707 percent, also breaking a record set on Thursday.
Investors, worried by the eurozone debt crisis and a slowing in global growth, are moving int safe-haven investments such as top rated sovereign bonds and gold.
Yields on the German bund, which fell below 2.0 percent for the first time earlier this month, are slightly lower than German inflation of 2.4 percent in August, meaning investors are buying into German debt at a loss.
The yield on 30-year German debt also hit a record low level of 2.413 percent.
© 2011 AFP