Spanish and Portugese 10-year yields fall to new record lows
Spain 10-year bond yields are down by another 1.2 bps to start the European morning and is hitting fresh record lows as the euro area bond rally continues to gather pace this week. In overnight trading, we saw France 10-year bond yields dip back under 0% to a new record low with German bund yields also extending declines.
As it stands, Spain looks to be next to join the 0% club and the sentiment here is causing a bit of drag in US Treasury yields as well. 10-year yields are now down to a session low of 2.01%, lower by 1.7 bps on the day.
Watch this space as it could affect yen movement later on and this also helps to alleviate some pressure off of gold.
