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Bund yields hit lowest in over three months after Israel strikes Iran

ReutersJun 13, 2025 6:58 AM

- German government bond yields fell to their lowest level in over three months on Friday, benefiting from a surge in investor appetite for safe haven assets after Israel launched widescale strikes against Iran.

German 10-year Bund yields DE10YT=RR fell 4 basis points (bps) to 2.44%, having marked a session low of 2.422%, the lowest since March 3. Yields on the two-year Schatz DE2YT=RR dropped 1.5 bps to 1.80%.

Longer-dated 30-year German debt DE30YT=RR performed the strongest, falling 4.5 bps to 2.91%, flattening the curve.

Bund yields were also set for their largest weekly decrease since late March, with a decline of 13 bps.

Euro zone bond prices rose, pushing yields lower, in line with gains in gold and the U.S. dollar.

French 10-year yields FR10YT=RR fell 2.4 bps to 3.162%, while Italian 10-year yields IT10YT=RR underperformed, dropping 1.5 bps to 3.40%, but hitting their lowest since December at 3.398%.

On the supply front, Sweden is due to auction new debt.

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