Sub-Zero Bund Yields Are Back on Radar as Europe Fears Recession

  • German bund yields approach zero as recession fears grow
  • Ten-year yields were last in negative territory in 2016
Photographer: Jasper Juinen/Bloomberg
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Yields on benchmark German government bonds are within touching distance of zero percent for the first time in almost three years as Europe’s economic performance stalls and concerns over global trade spur investors toward havens.

A no-deal Brexit, upheaval in Italian politics or a deteriorating labor market are among the risks that could turn bund yields negative, according to strategists.