LONDON: German 10-year Bund yields fell back below 0.50 percent on Wednesday after a report that ECB officials are considering options to stagger charges on banks hoarding cash or to buy more debt ahead of the next week's ECB meeting.
The European Central Bank is widely expected to cut its deposit rate on Dec. 3 and possibly expand its asset-purchase programme.
Central bank officials are considering options such as introducing a two-tier penalty charge on banks that park money with the ECB to snapping up the bonds of towns and regions.
German 10-year bond yields fell to a day's low of 0.49 percent, reversing an earlier rise.
"The news is positive for bonds generally because it shows there's more discussion on a deposit rate cut and how it can be finessed," said Peter Chatwell, a strategist at Mizuho.
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