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German 10yr yield falls below 1% on a dire day for the eurozone

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August 14, 2014 1%, australia, banks, bond bubble, bond yields, bonds, bund, bunds, business, core bonds, corporate, corporate bonds, deflation, ecb, economy, euro, eurozone, eurozone crisis, fi, finance, financial crisis, fixed income, france, france growth, french, funds, gdp, german, german bonds, german economy, germany, germany gdp, gfc, gilts, growth, growth lwoer, high rated bonds, inflation, new zealand, news, on demand, owen thomas, pension, recession, record, recovery, russia, saxo bank, saxo tv, simon fasdal, tradingfloor.com, ukraint, video, yield, yields
On a dire day for Europe's economies, yields on the German ten-bund fell below 1% for the first time. Figures out this Thursday show the eurozone's economy is completely flat, missing expectations of a tiny increase in GDP. Germany's economy contracted 0.2% quarter on quarter and growth in France was also less than expected at zero.
Saxo Bank's Head of Fixed Income, Simon Fasdal says this lack of growth, coupled with a deflationary risk, is one of the main drivers of these ultra low rates that are affecting developed countries around the world. Geo-political tensions are also weighing on sentiment. It begs the question as to whether we're seeing a "bond bubble". Simon believes that one could well be developing but it's not going to burst any time soon.