“It’s going to be a very long time before the ECB starts raising rates and that scenario is being pushed further out with low inflation, weakness in data and what’s going on in Ukraine,” Allan von Mehren, chief analyst at Danske Bank A/S, said in the Bloomberg aritcle. “People are moving their money into safer assets. Yields could stay negative if Ukraine continues to escalate.”
BUNL and BUNT track the exposure of the U.S. dollar value of returns of a German bond futures index, which is comprised of Germany-government issued debt, or Bunds, with a remaining maturity of between 8 to 10 years.
The PIMCO Germany Bond Fund tracks euro-denominated investment-grade German bonds. The ETF has a 5.46 year duration and a 0.45% 30-day SEC yield.
PowerShares DB German Bond Futures ETN
For more information on the fixed-income market, visit our bond ETFs category.