German bond yield to hit -0.10pc in coming months: RBS

LONDON: Germany could become the second of the world's major G7 economies to see its 10-year borrowing costs turn negative in the coming months, according to the Royal Bank of Scotland.

The bank predicts yields on the euro zone benchmark will hit minus 0.10 percent in coming months, revising down a previous forecast for 0.16 percent. Japan became the first G7 country to see its 10-year debt carry a negative yield last week.

"It will definitely happen at some point in 2016...it could even happen in the next month," strategist Dmytro Bondar said.

German 10-year yields were up slightly at 0.27 percent on Monday, off a nine-month trough of 0.133 percent hit last week and a record low of 0.05 percent from April 2015.