German 10 year yield is back threatening 1%

After last Wednesday's attempt to break above 1%, 10 year yields are once again back today threatening the level.

• After failed attempt last week, yields dropped towards 0.82% and kept hovering around the level. Today it has risen from 0.86%, now hovering around 0.95%, trying to break above 1%, which is psychologically important threshold.

There might be sharp rise in yields, if 1% level gets broken and that will threaten further selloffs in equity markets.

• Germany saw its yield curve dropped to negative territory up to nine years in April. However sharp selloffs in European bond markets since then has resulted in negative yields only up to three years as of today in German bond market. None of the yields are hovering below European Central bank's deposit rate of 0.2%. 1 year yield now stands closest at -0.195%.

Euro has not been able to cash in the yields rise, currently trading at 1.123 against dollar. However it is facing similar volatilities that of bund.