Germany's 10-year Bund yield falls to 1-1/2 week low on haven demand

• German bunds rise, pushing yields lower on haven demand.
• German coalition talks collapse.

Following the collapse of the coalition talks, German Chancellor Merkel is left with two options - form a minority government or opt for re-elections.

The resulting political uncertainty pushed the German 10-year bund yield to a 1-1/2 week low of 0.346 percent.

Across the pond, the 10-year US Treasury yield is down 1.8 basis points to 2.336 percent. The yield curve (spread/difference between the US 10-yr yield and the 2-yr yield) flattened/narrowed to 60.5 basis points; the lowest level since Oct. 2007.