Economics
German Bonds Fall as Trading Signals U.K. Will Remain in EU
- Benchmark 10-year bund yields approach two-week high
- Italy-Germany yield spread falls to lowest since June 13
Fixed Income Is in a Sweet Spot, Says Gartside
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German government bonds fell as traders followed signals from betting odds that Britain will vote to remain in the European Union in Thursday’s referendum.
Italy’s 10-year yield premium over Germany touched the lowest level in more than a week as German bund yields approached a two-week high. While bookmaker figures processed by the Oddschecker website put the chance of Brexit at about 25 percent, the polls were more divided on whether the U.K. would vote to stay or leave. European Central Bank President Mario Draghi said officials were ready to act if the vote caused market turmoil and threatened price stability.