Prices were up on Friday and for the week on German government bonds, the benchmark bonds for the eurozone.

Continuing low yields there are seen as yet another indication that the European Central Bank will not be cutting interest rates anytime soon.

Some analysts said that the reason for the rise in German bond prices was that China’s currency revaluation could increase investor demand for European government debt.

Yields on the 10-year Bund were down nearly 6 basis points on the week to a yield of 3.23 percent, leaving the margin between yields on 10-year US and German bonds at 1 percentage point.

This was the biggest gap between the two in five years.

Tags: European Stocks & Shares News, Interest Rates News //