German 10-year bund yields hit lowest since February on rising political concerns

The German 10-year bund yields hit lowest Monday since February this year from mounting political uncertainty ahead of a number of crucial elections in the euro zone.

The yield on the benchmark 10-year bond, which moves inversely to its price, fell 1-1/2 basis points to 0.22 percent, the long-term 30-year bond yields dipped 1 basis point to 0.996 percent and the yield on short-term 3-year bond traded 2-1/2 basis points lower at -0.76 percent by 08:20 GMT.

The Brexit and political uncertainty in Europe and Syria boosted demand for the safe-haven assets. Europe faces elections in France and Germany this year, while Britain has triggered Article 50 of the EU’s Lisbon Treaty, starting the two-year countdown to Brexit.

Also, Geopolitical risk remains a hot topic in the wake of Syria strikes last week. Russian press has reported that communications in Syria have been disrupted after the US actions, while other reports noted new bombing on the rebel town that suffered the chemical attack. ISIS also waged an attack on a joint coalition forces base in the south of the country.

Separately, US reports noted that a strike force led by US destroyer is approaching the Korean peninsula. State Sec Tillerson however said that a regime change is not the objective for North Korea.

Meanwhile, the German stock index DAX Index traded 0.09 percent lower at 12,216.50 by 08:40 GMT, while at 08:00GMT, the FxWirePro's Hourly Euro Strength Index remained neutral at -51.76 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex