Following the inversion of the U.S. Treasury yield curve, developed market government bond yields are all moving lower as investors seek safe havens.
What's happening: German 10-year bond yields fell below zero for the first time since 2016. Japan's 10-year yield is near -0.10, the lowest since 2016. Australia's 10-year bond yield fell to an all-time low of 1.772% and New Zealand's 10-year bond also hit its lowest level on record.
U.S. 10-year bond yields have fallen more than 15 basis points since last week's Fed meeting and are more than 30 basis points below their early March levels, notes Deutsche Bank.
- Marc Chandler, chief market strategist at Bannockburn Global Forex, points out that German, French, Italian and Spanish yields recently have fallen 25–35 basis points, while Portuguese and Australian bond yields have fallen around 45 basis points and 50 basis points, respectively.
- "The sharp decline in interest rates is a significant development," Chandler said in a note to clients.