Business News Tech AI Bund yields fall as investors seek safe havens amid AI concerns
On Thursday, the euro area's benchmark Bund yields declined significantly as investors shifted to safe-haven assets. This follows a substantial drop in technology stocks, which faced challenges due to high interest rates. Oil prices also fell over 1% as supply risks were weighed against U.S. attempts to reduce shipping costs. Meanwhile, the German 2-year government bond yield decreased, reflecting changing policy rate expectations in money markets.
The euro area's benchmark Bund yields dropped on Thursday as investors rushed into safe-haven assets after tech stocks tumbled overnight while catching up with an overnight decline in US Treasury yields. Tech stocks took a beating and credit markets wobbled on Thursday as crowded bets on data centres and other AI infrastructure faced a reckoning from high interest rates. Germany's 10-year government bond yields, the euro zone benchmark, were down 6.5 basis points to 3.40%. They have moved between about 3.40% and 3.50% since early this month.
Oil prices fell more than 1% as investors weighed risks to supply against US efforts to cut petroleum shipping costs by easing sanctions on so-called shadow fleet vessels. 06%. 73% by December. 67 in early October, the highest level since November 2011. 74 early this month, the widest since April 2025.
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