FRANKFURT (dpa-AFX) – The prices of German government bonds rose on Monday in view of the impending failure of negotiations on a Brexit trade pact. The Euro-Bund-Future futures contract rose by 0.26 percent to 175.46 points by the afternoon. The yield on ten-year federal bonds fell to minus 0.58 percent.
With a final show of strength, the European Union and Great Britain tried at the beginning of the week to bring about a trade pact for the period from January 1st. In Brussels, EU negotiator Michel Barnier, diplomats and parliamentarians assessed the prospects for an agreement on Monday as bleak. According to Barnier, the negotiations can continue until Wednesday.
The high level of uncertainty supported the German government bonds, which are considered safe. The prices of British bonds rose even more. In return, the yield on ten-year bonds fell by 0.07 percentage points to 0.28 percent.
The German bonds were also supported by the persistently high number of new infections with the coronavirus in Germany. In Bavaria, for example, the restrictions on public life are to be tightened further. Other federal states could follow.
The stronger than expected increase in production in the manufacturing sector in Germany did not affect the bonds. The German industry increased its production in October more than expected and thus recovered for the sixth month in a row from the severe Corona slump in the spring
– – .
