Como se combate o populismo? "Com eleições", responde Fukuyama

[Karamba]

LONDON, Feb 7 (Reuters) - Yields on 10-year euro zone government bonds fell to their lowest level in about 20 months on Monday, pushing the Bund future to a contract high, as a downward trend in long-dated bond yields resumed.

Bond yields had opened the day higher as the market took profits on strong price gains made on Friday after a weak U.S. non-farm payrolls report.

But now curve flattening trades, which have involved selling short-dated debt to buy long-dated bonds, were coming back into play and having a knock on impact on the futures market, dealers said.

"Curve flattening trades continue and the market continues to push long-dated yields lower," said one government bond trader in London. "No-one wants to buy the short-end at the moment."

So far this year, demand for long-dated debt has been strong -- partly stemming from changes in Dutch pension reforms.

At 1455 GMT, the benchmark 10-year Bund yield was down 1.1 basis point at 3.49 percent, having fallen as far as 3.481 percent -- its lowest level since June 2003.