German Bund rate hits new record low on Greek woes

PARIS: The rate on benchmark German 10-year bonds fell on Monday to a new all-time low of 1.475 percent as investors unsettled by the Greek debt crisis fled to the eurozone's safe haven.

The rate, or yield, on Bunds stood at 1.515 percent when trading on European public debt markets closed on Friday.

Meanwhile, German inflation dipped to 2.1 percent in April, nearing the European Central Bank's medium-term target of below but close to 2.0 percent.

For the entire 17-nation eurozone, inflation eased just slightly however to 2.6 percent in April, the 17th month running during which inflation has exceeded the ECB target.

Germany, the biggest economy in Europe, expects business activity to expand by 0.7 percent in 2012 and by 1.6 percent next year.

A spring forecast by the European Commission said it expects the aggregate eurozone economy to contract by 0.3 percent this year before growing by 1.0 percent in 2013.