As part of its expanded stimulus program, the ECB increased bond purchases, increasing demand for the benchmark debt and further pressuring yields.
Looking ahead, some market observers warn that yields could fall even further if demand for safe-haven bets, like German bunds, increase in the event of the United Kingdom’s so-called Brexit referendum on June 23, which could cause the U.K. to break away from the European Union.
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“Ten-year Bund yields could be negative very soon,” Ciaran O’Hagan, strategist at Societe Generale, told Reuters.
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DB German Bond Futures ETN