(Bloomberg) — German bonds were poised for the biggest rally on record as traders clamored for haven assets and bet the collapse of Silicon Valley Bank will force policymakers to raise borrowing costs much less than previously anticipated.
(Bloomberg) — German bonds were poised for the biggest rally on record as traders clamored for haven assets and bet the collapse of Silicon Valley Bank will force policymakers to raise borrowing costs much less than previously anticipated.
The yield on two-year German debt, among the most sensitive to changes in interest rates, fell more than 40 basis points. That’s put them on course for the largest one-day fall on record, surpassing declines seen during the global financial crisis in 2008.Â
Traders bet the European Central Bank will raise rates to around 3.5% by October, down from as high as 4.20% last week.
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