TREE NEWS reports: Germany’s 10-year Bund yield fell 8.7 basis points to 3.334% in late European trading on Thursday, October 22, after edging higher at the open and then declining steadily toward its August 31 low of 3.324%. The two-year yield dropped 9.2 bps to 3.035% and the 30-year fell 8.1 bps to 3.678%, breaking below its 100-day moving average of 3.7% and approaching its August 13 low of 3.640%. The 2/10-year spread widened 0.474 bps to +29.616 bps.
German 10-year Bund yield falls 8.7 bps to 3.334%
The move is a curve-wide rally rather than a front-end story: the two-year fell hardest and the 30-year broke its 100-day average, so duration is being repriced across the curve, not just at the belly. The 2/10 spread widening slightly while both yields drop points to easing near-term pressure rather than a growth scare steepening. The proximity of the 10-year to its August 31 low is the level to watch — whether that floor holds or gives way will say more about the driver than the size of this move.
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