LONDON, March 1 Reuters Benchmark German government bond yields dropped for a second consecutive session on Monday as investor sentiment improved after reflationary bets led bond markets to their biggest monthly selloff in years.

The rise in bond yields last month, spurred by U.S. fiscal stimulus hopes and a postpandemic economic rebound that could fuel inflation, reverberated around the world.

Investors said the surprising selloff resembled the taper tantrum of 2013, when hints that the U.S. Federal Reserve might slow its moneyprinting triggered an exodus from bonds.

Policymakers moved to dispel concern that they might tighten policy soon. Australia is widely expected to adopt a cautious stance at Tuesdays policy meeting and European Central Bank executives warned against withdrawing policy support too early in the economic recovery. Consequently, yields fell broadly.

Yields on tenyear U.S. Treasury yields fell five basis points to 1.40 on Monday. On Thursday, it touched 1.614, the highest in a year, rocking world markets.

We will probably see stabilising sovereign yields this week, which should give investors a sigh of relief after the past weeks tumultuous market environment, said Ipek Ozkardeskaya, a senior analyst at Swissquote.

German government bond yields also retreated. Yields on 10year securities fell to 0.30 after rising to a oneyear high of 0.20 last week.

Mondays drop comes after Germanys 10year yields , the regions benchmark, saw their biggest…