LONDON, Sept 27 (Reuters) - A record 65 percent of the German government bonds on the shopping list of the European Central Bank's asset-purchase scheme are ineligible because they yield less than the deposit rate, according to research from Swiss wealth manager Pictet.
The share of German bonds in the ECB's chosen maturity range of two- to 30-years that yield less than the -0.4 percent deposit rate -- the cut-off for purchases -- has risen from around 57 percent just before the ECB's Sept. 8 meeting.
Safe-haven German bond yields fell sharply on Tuesday on concerns as shares in Deutsche Bank hit record lows.
The yield on Germany's two-year bond hit a record low at around minus 0.707 percent
DE2YT=TWEB
, well below the ECB's deposit rate.
(Reporting by Dhara Ranasinghe, editing by Nigel Stephenson) ((Dhara.Ranasinghe@thomsonreuters.com; +442075422684;))
The share of German bonds in the ECB's chosen maturity range of two- to 30-years that yield less than the -0.4 percent deposit rate -- the cut-off for purchases -- has risen from around 57 percent just before the ECB's Sept. 8 meeting.
Safe-haven German bond yields fell sharply on Tuesday on concerns as shares in Deutsche Bank hit record lows.
The yield on Germany's two-year bond hit a record low at around minus 0.707 percent
(Reporting by Dhara Ranasinghe, editing by Nigel Stephenson) ((Dhara.Ranasinghe@thomsonreuters.com; +442075422684;))
