Euro Zone Bond Yields Near 6Week Lows ahead of ECB Meet

0
23

German 10year yields dip slightly to 0.25

ECB expected to keep stimulus taps flowing

ItalyGermany spread near tightest level in a month

Euro zone periphery govt bond yields

LONDON, June 10 Reuters Euro zone government bond yields were trading near their lowest levels since April on Thursday ahead of a European Central Bank meeting where policymakers are expected to signal they will keep the stimulus taps flowing.

While speculation has mounted this year on whether an expected global economic recovery could lead central banks worldwide to dial back on extraordinary monetary easing, ECB officials have played those prospects down recently.

As a result, euro zone government bond yields have dipped in the weeks leading up to todays ECB meeting, partly reversing a sharp rise in the preceding months.

Expectations for a tapering of PEPP purchases at the ECB meeting have reduced following recent comments from Council members that have played down this possibility, said Mohammed Kazmi, a fixed income strategist at UBP.

He was referring to the Pandemic Emergency Purchasing Programme PEPP, which saw the blocs central bank step up its bond purchases to unprecedented levels in response to the COVID19 crisis.

Germanys 10year bond yield, the benchmark for the bloc, was a touch lower on the day at 0.252, within touching distance of a sixweek low of 0.268 hit on Wednesday.

Euro bond yields ranging from highgrade Netherlands to comparatively lowrated Italy were all trading…

LEAVE A REPLY

Please enter your comment!
Please enter your name here