6 / 15  BIS central bankers' speeches  • Bonds Finally, on fixed income, core bond yields continued to probe historical lows after Brexit. More precisely, German 10-year bond yields hover in the area of –0.07% and the peripheral bonds have been the main beneficiaries of the hunt-for-yield environment along with the benign risk environment as reflected in declining volatilities across asset classes.
Also, the US government bond yields declined further near 1.50%, mainly due to the Fed’s delay in raising rates (Figure 10). Thus, markets went through the Brexit vote with little or no disruption to functioning with ample liquidity. 7 / 15  BIS central bankers' speeches  2. Implications of Brexit for central banks a.