Dutch government bond yields fall to new multiyear lows

Mary Pieterse-Bloem, Endowed Professor in Financial Markets at Erasmus School of Economics

The slide in government bond yields globally have pushed the Dutch 10-year bond yield below 0% for the first time since 2016 

Yields, which fall when bond prices rise, dropped after President Trump said on Twitter that he intends to impose new tariffs on Mexico if the country fails to help restrict the flow of immigrants into the U.S.

Germany’s 10-year government bond yield fell to minus 0.195% , its lowest in almost three years and within striking distance of record lows. It was down 2.5 basis points. According to Mary Pieterse-Bloem, Endowed Professor in Financial markets at Erasmus School of Economics and Global Head of Fixed Income at ABN AMRO, it is not surprising that in this context interest rates are falling for us as well. 'We always follow Germany, where, according to the figures, business confidence has fallen to its lowest level in 14 years.' 

The full article can be downloaded below (in Dutch).

More information

You can find the entire article (in Dutch) in het Financieele Dagblad, d.d. 1 June 2019, attached.

Read more about the inverted yield curve and Professor Mary Pieterse-Boem's vision about this (in Dutch) on IEXprofs.

For her television appearance on RTL Z, d.d. 3 June 2019,click on this link