Investors are heading for the safe havens

Two-year German bond yields fell below zero yesterday as low-risk assets rallied before an uncertain United States presidential election and another make-or-break parliamentary vote in Greece.

Spanish bonds came under selling pressure before a debt sale of up to €4.5bn (£3.6bn) on Thursday, which will include the longest-dated issue to be sold at an auction since mid-2011.

Greece's government presented a new austerity package to parliament yesterday, proposals which must win lawmakers' approval if the country is to secure more aid and stave off bankruptcy.

Parliament is expected to vote on the package tomorrow.