Germany’s 10-year Bund yield fell to a record low on Tuesday.
The yield on the Eurozone’s benchmark government bond fell three basis points to as low as 0.048% amid heavy buying from investors and the European Central Bank.
As part of its monetary-stimulus program, the ECB on Monday bought more German, French and Italian bonds than its rules stated in May, according to Reuters.
Bond buying by the ECB has been one of the key drivers of lower yields. At the same time, investors are rushing into the security as the British referendum vote on June 23 to stay or leave the EU approaches. And concerns about the economic and political risks of an “exit” vote are prompting the rush into a safe asset.
On Wednesday, the ECB will begin the corporate-bond-buying program it announced in a policy statement last week, in a bid to boost inflation in the region.
Here’s a chart showing the move lower: