Souring Sentiment Pushes Eurozone Bond Yields to New Two-month Lows

High-grade eurozone government debt yields dropped to their lowest levels in over two months as a cocktail of negative news sent investors scrambling for safe assets, Reuters reported. Poor corporate earnings, record deaths from COVID-19 in six U.S. states and frictions over a stimulus plan in the United States hit risk sentiment on Wednesday, and had investors retreating to safe assets such as government bonds. Fears of rising COVID-19 infections also hit Asia and Europe this week, with several countries imposing new restrictions and Britain quarantining travellers from Spain. “The tally of COVID-19 cases is surging further, not only in the U.S., with infection rates rising again in Europe as well during the holiday period, maybe due to a certain excessive carefreeness,” analysts at DZ Bank wrote in a note. Read more