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FXStreet (Mumbai) - The EUR/GBP dropped below 0.72 levels to hit a session low of 0.7162, tracking the widening spread between the UK 10-year Gilt yield and German 10-year Bund yield.
German yields hit record low
The 10-year Bund yield in Germany hit a record low of 0.087% on Thursday; down 2.2 basis points for the day. Meanwhile, their UK counterparts are trading moderately higher at 1.565%. Consequently, the British Pound strengthened.
Moreover, Germany now has negative yields on bonds maturing up to 8-years. Meanwhile, UK Gilt yields across the bond market curve are far from dipping to zero levels.
EUR/GBP Technical Levels
The pair currently trades at 0.7176, down 0.27% for the day. The immediate support is seen at 0.7152 (March. 19 low), under which the pair could extend losses to 0.7100. On the flip side, a break above 0.72 could see the pair re-test 0.7250 levels.