December 18, 2017 / 11:50 AM / a year ago

German yield curve flattest in almost six months

LONDON, Dec 18 (Reuters) - The yield curve in Germany, the euro zone’s biggest economy and its benchmark bond issuer, was its flattest in almost six months, Tradeweb data showed on Monday.

The gap between German 30 and 2-year bond yields shrank to 178 basis points, its tightest since late June.

“To some extent, it’s following the U.S. curve, where we’ve seen this very aggressive performance of the ultra long end,” said Commerzbank rates strategist Michael Leister.

“It’s also a reflection that the market is playing year-end dynamics again, where many look back to what happened last year with a very strong performance from German Bunds and it’s looking like a repetition of that.”

2-year German bond yields were up around 2.5 bps at -0.73 percent, while 10-year and 30-year equivalents were flat on the day. (Reporting by Fanny Potkin; editing by Dhara Ranasinghe)

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