Eurozone bonds continue to fall on weak China data, looming Brexit deal
London — Eurozone bond yields extended falls on Monday after weak Chinese data added to a gathering storm of risk aversion while investors await further clarity from Tuesday’s Brexit vote in Britain’s parliament. Concerns about the German economy and the government shutdown in the US, as well as the threat of a new election in Greece, added to the bid for safe-haven assets across the bloc and 10-year bond yields fell as much as five basis points. Asian and European shares led the fall on Monday after China’s exports unexpectedly fell the most in two years in December. After a muted start, the bid for safe-haven eurozone bonds gathered momentum, tracking a move by US Treasuries in which 10-year yields fell 3.4 basis points to 2.66%. Germany’s 10-year government bond yield, the eurozone benchmark, fell three basis points, 0.207% lower on Friday’s close but bolstered by new supply last week. Matt Cairns, a rates strategist at Rabobank, said that signs of weakness in Europe’s hitherto s...
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