German bonds yielding less than Japan for first time

Yields on tranches of German debt fell below the amount paid by Japan for the first time ever mid-afternoon, as investors considered the likelihood of another round of stimulus in Europe.

As Spanish bond yields rose ever nearer to 6%, and the country's equity market hit a 3-year low, investors were seen buying up German debt, driving down yields to new lows. The payout on 2-year bunds fell to 0.109%, below that of even Japan which yields 0.111% on its 2-year note. It is the first time since Bloomberg began collating data in 1990 that it has yielded less than Japan. The record low came as Spanish debt soared, with the yield on the country's 10-year debt hitting 5.972%, the highest level since mid-December. Spain's 2-year tranche currently yields 3.28%. Investors a...