LONDON, June 9 (Reuters) - Euro zone government bond yields fell on Friday as an unexpected election result in Britain just days before talks on the country’s exit from the EU are due to begin triggered some demand for safe-haven assets. Results from Thursday’s election showed British Prime Minister Theresa May’s Conservative Party has lost its majority in parliament.
Most euro zone bond yields slipped 1-2 basis points, with French 10-year bond yields hitting fresh five-month lows at around 0.64 percent while Italian yields extended the previous day’s sharp falls to a 1-1/2 week low at 2.14 percent.
Germany’s benchmark 10-year bond yield was down just 1 basis point at 0.25 percent.
Reporting by Dhara Ranasinghe, Editing by Abhinav Ramnarayan