EUREX / Bund future just in the red – when will zero fall?
FRANKFURT (Dow Jones) – The Bund future trended negligibly in the red on Wednesday. Meanwhile, the stock market is waiting for the yield on ten-year government bonds to rise above zero percent for the first time since May 2019. The day before, the paradigm shift was only just missed. However, the brand remains within striking distance and its appeal is still high, according to the interest rate strategists at DZ Bank in the morning.
The current yield environment is being driven primarily by economic optimism based on the hope that the dominant omicron mutation of the corona virus could decisively change the course of the pandemic. The quotations are not so much because of inflation, but rather because of the long-term growth prospects, than they were at the beginning of December last year.
“Even if inflation was less relevant for the development of returns in the past three to four weeks, inflation should be in the limelight again today, according to DZ Bank. On the auction front, the German Finance Agency is also issuing its first 30-year federal bond in the new one Year.
The March contract of the Bund future loses 4 ticks to 169.84 percent. The daily high is so far at 169.98 percent and the daily low at 169.81 percent. 17,962 contracts have been traded so far. The Bobl Futures loses 2 ticks to 132.72 percent.
DJG / thl / raz
(END) Dow Jones Newswires
January 12, 2022 02:47 ET (07:47 GMT)