1. A benign inflation outlook and a possible cut in interest rates in Germany pushed bund yields even lower than their U.S. counterparts. 2. Bund yields are expected to fall faster than Treasuries yields headed into year end, investors said. 3. Bund yields are expected to fall faster than Treasuries yields headed into year end, narrowing the yield spread between U.S. and German securities. 4. Currency risks apart, the drop in yields on short-dated debt, which tracks deposit rates, should drag bund yields down, too. 5. German bonds fell as German industrial production rose more than expected in October, slowing a rally that has driven bund yields close to record lows. 6. German bonds fell, as a drop in U.S. Treasuries forced bund yields up from historic lows. 7. It was the February nonfarm payrolls report that first pushed bund yields under those of their U.S. counterparts this year. 8. Some investors have become skeptical in recent weeks that bund yields can sustain their recent rally. 9. Still, expectations for lower interest rates and subdued inflation in Germany will push bund yields even further below those of their U.S. counterparts, investors said. 10. The difference between German bund yields and French bond yields is a measure of the perceived risk-premium investors demand to hold French bonds over German ones. |