Tsipras letter drives German bond yields higher and Greek bond yields lower

FXStreet (Mumbai) - The safe haven German bunds fell, pushing the yields higher after the FT reported that a new letter from Greek PM Tsipras indicates willingness from the part of his government to accept all his bailout creditors' conditions that were on the table this weekend with only a handful of minor changes.

The 10-year German yield now trades 5.1 basis points to 0.821%. The German yield curve now has negative yields on bunds maturning upto 4 years. The 2-year yield still trades below -0.20%, which is a threshold level to qualify under the ECB’s QE program.

Meanwhile, the Greek yields have erased gains. The 10-year Greek yield now trades largely unchanged on the day after having turned lower from the high of 15.519%.