LONDON Aug 15 German Bund yields held near
their record lows around 1 percent on Friday, with investors
increasingly betting the ECB will ease monetary policy further
to lift a stagnating economy struggling with low inflation.
Data showed on Thursday the euro zone economy failed to grow
in the second quarter even before the sanctions the West and
Russia imposed on each other over the conflict in Ukraine
started to bite.
Russian President Vladimir Putin struck a conciliatory note
on Thursday in Crimea saying Moscow would stand up for itself
but not at the cost of confrontation with the outside world.
However, tensions remained high in Ukraine, where Kiev
government forces were fighting pro-Moscow separatists and
dozens of heavy Russian military vehicles massed near the
Ten-year Bund yields were last 0.4 basis
points higher on the day at 1.018 percent, having briefly dipped
below 1 percent on Thursday, according to traders.
"We look for Bunds to hug the 1 percent yield ... not just
for today, but rather longer," Markus Koch, a Commerzbank
analyst, said in a note.
Other euro zone bond yields were flat to slightly lower.
(Reporting by Marius Zaharia; Editing by Toby Chopra)