financetom
World
financetom
/
World
/
Euro zone bond yields dip as traders assess interest rate outlook
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Euro zone bond yields dip as traders assess interest rate outlook
Apr 17, 2024 8:46 AM

LONDON, April 17 (Reuters) - Euro zone bond yields fell

slightly on Wednesday after climbing to a 1-1/2-month high the

previous day, as traders assessed central banks' possible next

moves following robust U.S. data.

This week's fall in demand for safe assets pushed bond

yields higher, while surprisingly strong U.S. retail data on

Monday caused investors to further trim bets on Federal Reserve

rate cuts this year, and by extension causing a slight reduction

in European Central Bank (ECB) rate cut pricing.

Germany's 10-year bond yield, the benchmark for

the euro zone, was last 2 basis point (bp) lower on the day at

2.465%, after hitting the highest level since late February on

Tuesday. It has risen since Friday's tumble to 2.318% when

investors snapped up safe assets as tensions between Israel and

Iran ratcheted higher. Yields move inversely to prices.

On Tuesday, top U.S. central bank officials, including

Federal Reserve Chair Jerome Powell, backed away from providing

guidance on when interest rates may be cut and said monetary

policy needed to be restrictive for longer.

On the same day, ECB President Christine Lagarde said the

bank would cut rates soon, barring any major surprises, and

argued the impact of geopolitical events on commodity prices had

not been very significant so far.

"European data remains on the weak side, the disinflation

trend is still intact in Europe and ECB is set to cut rates in

June," said Mohit Kumar, chief Europe economist at Jefferies.

Longer-dated yields fell slightly in the afternoon session.

Emmanouil Karimalis, European rates strategist at UBS, said the

market is keeping an eye on oil prices and their inflation

implications.

Oil has risen to around its highest since October on

the back of Middle East tensions and an uptick in global growth,

but was down around 0.9% on Wednesday.

Italy's 10-year bond yield was last 4 bps lower

at 3.874%, after rising to its highest level since March 1 on

Tuesday.

The German 2-year bond yield, most sensitive to

expectations for policy rates, was last 1 bp higher at 2.942%,

after briefly rising to an almost one-week high.

Analysts said investors will be watching for a slew of

central banks speakers due later in the day, including Lagarde

and Bank of England Governor Andrew Bailey.

Data on Wednesday confirmed euro zone inflation slowed

across the board last month, reinforcing expectations for a ECB

interest rate cut in June, even as rising energy costs and a

weak euro currency cloud the outlook.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
European Equities Traded in the US as American Depositary Receipts Decline in Thursday Trading
European Equities Traded in the US as American Depositary Receipts Decline in Thursday Trading
Aug 14, 2025
11:05 AM EDT, 08/14/2025 (MT Newswires) -- European equities traded in the US as American depositary receipts were slightly lower late Thursday morning, declining 0.12% to 1,510.10 on the S&P Europe Select ADR Index. From continental Europe, the gainers were led by biopharmaceutical company Genfit ( GNFT ) and financial services company Banco Bilbao Vizcaya Argentaria ( BBVA ) ,...
Asian Equities Traded in the US as American Depositary Receipts Track Lower in Thursday Trading
Asian Equities Traded in the US as American Depositary Receipts Track Lower in Thursday Trading
Aug 14, 2025
10:39 AM EDT, 08/14/2025 (MT Newswires) -- Asian equities traded in the US as American depositary receipts were trending lower Thursday morning, falling 0.80% to 2,464.06 on the S&P Asia 50 ADR Index. From North Asia, the gainers were led by tech company Xunlei ( XNET ) and financial services company Sumitomo Mitsui Financial Group ( SMFG ) , which...
GRAINS-Soybeans retreat as demand worries overshadow USDA's production cut
GRAINS-Soybeans retreat as demand worries overshadow USDA's production cut
Aug 14, 2025
(Rewrites throughout, adds quote, updates prices, changes dateline from PARIS/CANBERRA) By Karl Plume CHICAGO, Aug 14 (Reuters) - U.S. soybean futures declined for the first time in four sessions in a profit-taking setback on Thursday after a rally ignited by the U.S. government's lower-than-expected harvest outlook took prices to six-week highs. Concerns about soybean export demand due to trade tensions...
European Equities Close Higher in Thursday Trading; EU GDP Expands Slightly in Q2
European Equities Close Higher in Thursday Trading; EU GDP Expands Slightly in Q2
Aug 14, 2025
12:09 PM EDT, 08/14/2025 (MT Newswires) -- The European stock markets closed higher in Thursday trading as the Stoxx Europe 600 advanced 0.49%, Germany's DAX gained 0.75%, the FTSE 100 was up 0.13%, France's CAC rose 0.84%, and the Swiss Market Index increased 0.19%. Seasonally adjusted GDP increased 0.1% in Q2 in the euro area and 0.2% in the EU,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved