German bond yields slip below Japan's for first time ever

Germany's 10-year government bond yield slipped below Japan's for the first time on record today.

A combination of extremely low bond yields across the eurozone, and a jump in Japan's borrowing costs led to the move. The German 10-year bond yield fell another basis point today to 0.306% as investors continue to worry the eurozone is heading towards a deflationary environment similar to Japan's, and growth will continue to be weak. Meanwhile, Japan's borrowing costs rose sharply higher today by 7 basis points, following weak demand at a 2.4trn yen government debt auction. The sale had a bid-to-cover ratio of just 2.68 times, compared to a 10-auction average of 3.7 times, according ...