Investing.com - Germany's 10-year bond yield dropped below zero for the first time in history on Tuesday, as demand for safe-haven assets mounted amid growing anxiety the U.K. will vote to leave the European Union in a referendum less than 10 days away.
Recent polls suggested support for the U.K. campaign to leave the European Union is picking up. Britain's "Out" campaign widened its lead over the "In" camp ahead of the country's June 23 referendum, according to two opinion polls published by ICM on Monday.
German 10-year bonds fell to an all-time low of -0.026%. It last stood at -0.016% by 09:15GMT, or 5:15AM ET, down 4.5 basis points, or 160.7%.
Meanwhile, U.K. 10-year bond yields fell 4.8 basis points, or 4.05%, to trade at 1.162%, after hitting a session low of 1.161%, the lowest level on record.
Elsewhere, the yield on U.S. 10-Year Treasurys slipped 4.1 basis points, or 2.51%, to hit 1.575%, the lowest since February 11, while the 10-year Japanese government bond yield also hit a record low of -0.168%.
A negative yield implies investors are paying borrowers for the privilege of parking their cash. Bond prices move inversely to yields.
In the currency market, the pound and the euro fell to their lowest level since 2013 against the safe-haven Japanese yen as growing anxiety over the prospect of the U.K. exiting the European Union left investors scrambling for safe haven assets.
European stock markets traded sharply lower, with Germany’s DAX leading losses, as global concerns over a Brexit weighed on appetite for riskier assets.
Across the Atlantic, U.S. stock futures pointed to a lower open, with this week’s Federal Reserve policy meeting and looming Brexit vote in focus.