WHY GERMAN YIELDS COULD FALL FURTHER
Germany's economy shrank by approximately 0.25% in the fourth quarter of last year, raising fears Europe's second largest economy is on the brink of recession.
German chancellor Angela Merkel has said she cannot guarantee support of the controversial financial transaction tax - known as the Tobin tax - which threatens to create a rift between Germany and France days before a crucial European summit.
Germany today issued €4bn of 6-month debt with a negative yield for the first time at auction as investors continue to pile into the perceived safe haven amid the ongoing eurozone crisis.
We ask investment experts for their forecasts for 2012.
Europe's single currency reached a 15-month low against the dollar following a French bond auction this morning which saw almost all of the €8bn of debt targeted being sold.