Eurozone government bond yields have fallen due to a slowdown in supply.
Yields on Eurozone government bonds have fallen, and after a large volume of sovereign bond issuance in the first few weeks of the year, supply in the region is expected to slow significantly. Rainer Guntermann of Deutsche Bank stated in a report: "German government bonds and Eurozone government bonds have the potential to rebound." "After the massive issuance in the first three weeks, supply may slow down, with net supply turning negative." Eurozone bonds are also following the trend of US Treasuries, as investors seek safe havens due to concerns about another potential government shutdown in the US and ahead of the Federal Reserve's decision on Wednesday. Data from the London Stock Exchange Group shows that the yield on 10-year German government bonds has fallen by 1.9 basis points to 2.884%.
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