German yields rise, Greek yield curve normalized

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 30, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Mumbai) - The yield on the German bunds advanced today, while the Greek yield curve appears to have normalised ahead of the Thursday’s ECB meeting.

    German 5-yr yield off deposit rate level

    The 5-yr German yield advanced 1.3 basis points to -0.18, after having hit a low of -0.20%, which is the ECB’s deposit rate. The 2-year and 3-year yields trade well below the deposit rate as the markets expect the ECB to announce another cut in the deposit rate on Thursday.

    Greek inverted yield curve is history

    The inverted greek yield curve is history since the Greek crisis is out of the way for last quarter or so and due to the increased prospects of more ECB easing. The yield curve was inverted since the beginning of 2015 but the correction started happening as and how the Greek crisis moved out of the way.

    As of now, the Greek 10-year yield stands at 7.45%, while the 2-year yield stands at around same levels. The 20-yr and 30-yr yields stand at 7.778% and 7.50%.
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