German 1-year bunds move to negative yield for first time ever

The yield on 1-year German bunds turned negative today for the first time ever, according to Bloomberg data, as the European Central Bank looks set to ramp up measures to fight the debt crisis.

The yield on the 1-year note fell 13 basis points to -0.05% by midday. This is the first time it has seen a negative yield since Bloomberg began compiling data on the asset class in 1995. Meanwhile, 10-year bunds rose for the first time in a week after it was suggested the ECB will move to cut interest rates and boost the liquidity available to banks as soon as 8 December, according to a Market News International report. Last week Germany experienced a disastrous auction of €6bn worth of debt, below its targeted amount, which was 1.07 times covered. The German government was only a...