German bunds slump on investor’s growing risk appetite, yields likely to rally if Hillary Clinton wins

The German bunds plunged Tuesday as market hopes that Democratic presidential candidate Hillary Clinton will win the United States election has boosted investors risk appetite.

The yield on the benchmark 10-year bond, which moves inversely to its price, rose 1 basis point to 0.16 percent, the yield on long-term 30-year note also climbed 1 basis point to 0.76 percent and the yield on short-term 2-year bond bounced 1/2 basis point to -0.63 percent by 09:20 GMT.

The 10-year bund yield is expected to rally if Democrat presidential candidate Hillary Clinton triumphs over Republican Trump in today’s presidential election. Latest polls have also showed that major probability for Clinton to win is higher as compared to Trump. Latest US Fox News poll puts Clinton ahead of Trump by 4 percent among likely voters in the presidential election race.

Earlier, CBS News, ABC/Washington Post and NBC/WSJ poll all showed the same 4 percent gap in favour of Clinton whilst Selzer & Co poll showed a 3 percent lead for Clinton. Also, in the latest ABC/Washington Post poll Clinton leads Trump by 47 percent to 43 percent in the US presidential election race.

Global Treasury yields jumped after FBI Director James Coney released an official statement over the weekend saying that Hillary Clinton has been cleared of all charges, remaining stern in their conclusions expressed in July with respect to Secretary Clinton. This announcement removed clouds of suspicion around her campaign and potential Presidency.

Meanwhile, the German stock index DAX Index traded 0.11 percent lower at 10,446 by 09:30 GMT.