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German ten-year bond yield near two-week lows

FXStreet (Mumbai) - The German Ten-year bond yield slipped to a two-week low today after the European Commission revised down its growth and inflation forecast.

The German-ten year yield declined to 0.811% from the day’s high of 0.851%. Moreover, the director general of the European Commission said in a statement on the forecast for 2014 to 2016 , "We see growth, coming to a stop in Germany, protracted stagnation in France and contraction in Italy,".

The EU executive said the Eurozone's economy would grow 0.8% this year, 1.1% in 2015 and by 1.7% in 2016. Meanwhile the Commission said that the inflation will be 0.5% this year, 0.8% in 2015 and 1.5% in 2016.

The disappointing forecasts pushed the European stock markets into the red while the bond prices gained. The benchmark bond yields are expected to fall further on the disappointing inflation and growth forecasts of the European Commission.

German Ten-year Yield Technical Levels

The yield has an immediate support at 0.767%, under which it can fall to 0.724%. On the flip side, yield may rise again to 0.832%, if it manages to sustain above 0.811%.

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