Government bond market volatility subsided in May compared to the previous two months, despite a barrage of weak economic data published around the world. In the euro area, the majority of 10-year government bond mid-yields rose slightly during the month, with those for Germany registering the biggest increase of 13.5 basis points to close May at -0.45%. The country's Federal Statistical Office (Destatis) estimated that the annual inflation rate would fall to 0.6% in May, its lowest level since September 2016.
In contrast, peripheral nations logged double-digit yield declines, with those for Greece and Portugal's