German Bund yields hold above six-month lows as Fed taper talk prevails

Government bond yields in Germany, the euro zone’s benchmark bond issuer, held above recent six-month lows on Tuesday as talk that the U.S. Federal Reserve could soon discuss tapering its bond buying stimulus kept bond market bulls in check for now. Friday’s stronger-than-expected U.S. jobs report and other signs of an improving labour market have prompted investors to rethink the outlook for U.S. monetary policy, halting recent sharp falls in both U.S. and European bond yields. In early trade, Germany’s benchmark 10-year Bund yield was a touch lower on the day at -0.46% but six basis points above six-month lows hit last week.