German, French bond yields at multi-decade lows: bond analyst
Yields on German 10-year bonds hit their lowest level since at least 1977 on Thursday while their French counterparts fell to the lowest point since at least 1985, according bond strategists.
Investors fled to the safety of German and French government bonds dumping risky assets after a surprise jump in US jobless claims added to concerns in financial markets about Europe's debt crisis
At 1700 GMT, the German 10-year bund, considered to be the benchmark risk-free asset along with US Treasury bonds, was yielding 2.678 percent, down from 2.748 percent Wednesday evening.
Meanwhile, the yield on France's 10-year OAT bond fell below three percent to 2.927 percent from 3.007 the previous evening.
In addition to their safe-haven status, low-risk government bonds are also benefitting from the outlook for low inflation.
© 2010 AFP