German Bunds sell below 1% yield for the first time ever

Germany sold 10-year government debt with borrowing costs below 1% for the first time ever at an auction on Wednesday.

The government sold 4.1 billion euros ($5.2 billion) at a 0.93% yield, which was the lowest yield level since Bloomberg started tracking the benchmark in 1993.

On the secondary market, the 10-year German Bund yield fell 3 basis points to 0.920%, according to electronic trading platform Tradeweb.

This slump in the German yields highlights the safety trade in the markets, given the slowdown in Eurozone growth and low inflation which are prompting the European Central Bank to further loosen monetary policy, making German Bunds a valuable investment for the meantime.