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German 10-year bond yield rises to 7-month high

LONDON, Jan 2 (Reuters) - Germany’s 10-year bond yield rose to a seven-month high on Thursday as trading in a new year got under way, with optimism over U.S./China trade relations denting the appeal of safe-haven assets.

U.S. President Donald Trump said on Tuesday that Phase 1 of a trade deal would be signed on Jan. 15 at the White House.

This together with a decision by China’s central bank on Wednesday to cut the amount of cash that all banks must hold as reserves, releasing around 800 billion yuan ($114.91 billion) in funds to shore up the economy, boosted investor sentiment.

That put bond markets on the back foot, with Germany’s 10-year bond yield touching -0.166% - its highest level in seven months. (Reporting by Dhara Ranasinghe; editing by John Stonestreet)

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