Fonte/Source, Bloomberg, German government bonds surged the most since November 2011 after a weekend of turmoil which saw Greece’s Prime Minister Alexis Tsipras announce a referendum on the nation’s bailout, raising the risk of an exit from the euro.
Italian and Spanish bonds plunged as Greece shut its banks and imposed capital controls in a dead-of-night announcement designed to avert the collapse of its financial system. The shared currency dropped and U.S. Treasuries climbed. The turbulence is in contrast to last week, when German bonds fell and Spanish securities advanced amid optimism a deal would be reached.
German 10-year bund yields fell 19 basis points, or 0.19 percentage point, to 0.74 percent as of 7:36 a.m. London time. The 0.5 percent security due in February 2025 climbed 1.695, or 16.95 euros per 1,000-euro ($1,107) face amount, to 97.82. The yield rose 17 basis points last week.
Treasury 10-year note yields fell 15 basis points to 2.32 percent, while the euro slid 0.9 percent to $1.1069 and touched $1.0955, the lowest since June 2.