* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr
LONDON, Oct 15 (Reuters) - German government bond yields
fell to seven-month lows on Thursday as prospects of fresh U.S.
stimulus before the presidential election faded while rising
coronavirus cases in Europe boosted appeal for safe-haven
Yields on perceived safe-haven German government bonds for
10-year maturities fell 2 bps to -0.594%, the lowest since
mid-March. Yields have fallen nearly 7 bps this week.
Downbeat comments from U.S. Treasury Secretary Steven
Mnuchin that a stimulus deal was unlikely before the Nov. 3 vote
provided one of several reasons for profit-taking.
"Data today is expected to confirm U.S. economic sentiment
is deteriorating, U.S. fiscal stimulus remains some way off and
a hard Brexit remains likely," Mizuho strategists said in a
Also weighing on sentiment was a resurgence in COVID-19
cases in Europe, with some nations are closing schools,
cancelling surgery and enlisting student medics.
A rally in peripheral European government debt markets
including Italy stalled as investors took profits.
Anticipated support from the European Central Bank has
particularly benefited debt from lower-rated Southern European
countries, which offer a yield pick-up on the likes of Germany
and would benefit the most from the stimulus.
Portugal raised 1 billion euros from an auction on
Wednesday, which included eight-year bonds pricing at a negative
yield, the first time it has achieved a sub-zero yield on a
maturity longer than six years.
Italian 10-year bond yields were trading at 0.659% after
falling to a record low at 0.634% on Wednesday
(Reporting by Saikat Chatterjee; editing by John Stonestreet)