Pool of negative-yielding euro zone govt bonds shrinks in October - Tradeweb

Reuters
Updated

LONDON, Nov 1 (Reuters) - The pool of negative-yielding government bonds in the euro zone shrank in October for the first time since April, data released by Tradeweb on Friday showed.

Government bonds trading with negative yields in the euro area fell to 4.97 trillion euros in October, or 62% of the total 8 trillion euro market, compared to 69% in September, according to data from the electronic trading platform.

This was the first time the share fell month-on-month since April.

Bond yields in the euro zone ended October significantly higher, mostly driven by expectations that Britain will avoid a no-deal Brexit. Germany's 10-year Bund yield saw its biggest monthly rise since January 2018, up 17 bps in October. Thirty-year German bond yields returned to positive territory.

The share of negative-yielding euro investment-grade corporate bonds fell to 1.03 trillion euros, or 30% of the total market, from 34% in September, Tradeweb said.

That pool has shrank since August, when it peaked at a record 49% share of the market.

(Reporting by Yoruk Bahceli; Editing by Dhara Ranasinghe)