LONDON: Germany's 10-year bond yield was set on Friday for its biggest weekly fall in seven months, ending a week that has seen strong demand for safe-haven government bonds in the euro zone's biggest economy.
A clear signal from top ECB policymakers this week that they will only end asset buys when they are satisfied that inflation is on a sustained path has boosted bonds across the bloc.
Safe-haven German debt has also had a boost as investors fret about the prospects of a global trade war, unexpected personnel changes in the US administration, renewed tension between Russia and the West and political uncertainty in Italy.
Germany's 10-year bond yield is down 9 basis points this week at 0.56 percent, putting it on track for its biggest weekly fall since August.
Other euro zone bond markets have also seen yields fall significantly thanks to a dovish European Central Bank.
Portugal's 10-year bond yield fell 6 bps to 1.73 pct, its lowest level in over seven weeks. It was set for it biggest weekly fall since November, down 13 bps.
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