UK election shock pins euro zone bond yields near multi-month lows

LONDON, Ramadan 14, 1438, Jun 9, 2017, SPA — Euro zone government bond yields dipped on Friday as Britain’s ruling party lost its majority in parliament just days before talks on the country’s exit from the European Union are due to start, triggering support for safe-haven assets, Reuters reported.
German Bund yields were pinned near six-week lows, having already tumbled in recent weeks on the possibility of an election upset as polls suggested a tightening race between Britain’s leading parties.
No clear winner emerged from Thursday’s British election.
With talks of unprecedented complexity on Britain’s departure from the EU to start in just 10 days’ time, sterling was hit by uncertainty over who would form the next government and over the fundamental direction Brexit would take.
Across the euro area, government bond yields opened slightly lower, with French 10-year bonds yields touching a fresh five-month low at around 0.63 percent.
Italian yields extended the previous day’s sharp falls to hit a 1-1/2 week low at 2.14 percent.
Germany’s benchmark 10-year bond yield edged lower to 0.25 percent and was within sight of six-week lows hit the previous session after the European Central Bank cut its forecasts for inflation and said policymakers had not discussed scaling back its massive bond-buying programme.
–SPA
10:40 LOCAL TIME 07:40 GMT