The German Bunds gained on Monday as risk sentiment softens among investors after Petroleum Exporting Countries (OPEC) and Russia failed to strike a deal in Doha to freeze crude output. The yield on the benchmark 10-year Treasury note, which moves inversely to its price, moved down 1.59 pct to 0.342 pct and the yield on the 3-year Treasury bond dipped 4.69 pct to -0.408 pct by 0840 GMT.
The negotiations between Petroleum Exporting Countries (OPEC) and Russia failed to reach an agreement in the Doha round of talks on Sunday to strike a deal on oil output freeze. On the other hand, Saudi Arabia said that they were ready to freeze the current level of crude oil production on condition that all other producing countries follow the same.
The German bunds have been closely following developments in oil markets because of their impact on inflation expectations. The International benchmark Brent futures fell 3.29 pct to $41.70 and West Texas Intermediate (WTI) tumbled 4.73 pct to $38.45 by 0840 GMT.
Meanwhile, the German stock index DAX Index dipped 0.19 pct at 10,031 by 0840 GMT.
Lastly, the investors will now focus on the ECB governing council meeting on Thursday, which is expected to culminate in the decision to leave policy unchanged.


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