LONDON, Nov 20 (Reuters) - Germany’s 10-year bond yield fell to its lowest level in around 1-1/2 weeks in early Monday trade, after talks to form a coalition government failed and raised the risk of fresh elections.
The political crisis in Europe’s biggest economy boosted demand for safe-haven government debt, while the euro fell sharply against other major currencies and German’s benchmark stock index was expected to open lower.
Germany’s 10-year Bund yield dipped around 1.5 basis points to 0.35 percent, its lowest level since Nov. 9.
In Germany, the pro-business Free Democrats unexpectedly pulled out of more than four weeks of negotiations with Chancellor Angela Merkel’s conservative bloc and the ecologist Greens, citing irreconcilable differences. (Reporting by Dhara Ranasinghe; Editing by Toby Chopra)