German 2-year yield above ECB’s deposit rate

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 4, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The yield on the German 2-year yield now trades 2 basis points above the ECB’s deposit rate of -0.30%.

    The yield currently trades -0.28%. Meanwhile, the benchmark 10-year Bund yield currently trades at 0.70%.

    The two-year yield traded at -0.45% ahead of the ECB rate decision as markets priced-in a 10bps deposit rate. However, the Bund prices suffered an exaggerated sell-off, pushing the yields higher after the ECB left the size of the QE unchanged and merely extended the maturity to end-March 2017.

    The markets had positioned for an increase in the size of the QE program by EUR 10 billion.
    For more information, read our latest forex news.

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