Following disappointing growth data for the euro zone, 10-year yields finally broke through the 1 percent handle on Thursday—a first—dipping to an intraday low of 0.998 percent.
Yields then fell below 1 percent again on Friday, on reports that Ukrainian troops had attacked armed Russian military, which had crossed into the country near the border of Izvaryne. U.S. yields also declined, hitting a low of 2.333 percent, while the euro and European stocks turned negative.
Irrespective of further news from Ukraine, some analysts forecast Bunds could fall still lower if economic news from Europe remains weak.
"There is no reason why the 10-year and the 30-year in Germany cannot go lower, if we continue to get these kinds of figures, and if the conviction the market has, that Europe is heading for a Japan-like scenario (low growth and low inflation), continues to grow—and right now it is growing," Luca Jellinek, head of European rates strategy at Credit Agricole, told CNBC on Friday.