Yield of World Bonds is Declining

The situation in global markets remains tense because of geopolitics. American and Asian stocks continue to decline, and investors fled to safe assets. German government bonds, which are considered extremely safe, are in great demand today, because of the growing geopolitical situation between the United States and North Korea.

The 10-year yield on German government bonds fell for the first time since June 29 by 0.29%. Japanese, British and US 10-year government bond yields are at the lowest level since the end of June. The gap between the yields of bonds of Italy and Germany reached its highest level in three weeks today (162 basis points).