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 >
Yields on Japan's shorter-end bonds rise after BOJ comments drive rate hike bets
Yields on Japan's shorter-end bonds rise after BOJ comments drive rate hike bets
Mar 12, 2025
TOKYO, March 13 (Reuters) - Yields on Japan's shorter-dated government bonds reversed course to rise on Thursday as comments from the Bank of Japan chief boosted bets for an early interest rate hike. The 10-year JGB yield rose 1 basis point to 1.35%, after falling to as low as 1.495% earlier in the session. BOJ Governor Kazuo Ueda said on...
FOREX-Dollar bounces on rise in yields as trade war roils markets
FOREX-Dollar bounces on rise in yields as trade war roils markets
Mar 12, 2025
* Dollar up against yen, Swiss franc * Investors digest implications of escalating trade war * Uncertainty over Trump's policies complicates outlook for central banks By Rae Wee SINGAPORE, March 13 (Reuters) - The dollar rebounded slightly on Thursday thanks to a rise in U.S. Treasury yields, though currencies traded in tight ranges as investors struggled to determine the impact...
Dollar bounces on rise in yields as trade war roils markets
Dollar bounces on rise in yields as trade war roils markets
Mar 12, 2025
SINGAPORE (Reuters) - The dollar rebounded slightly on Thursday thanks to a rise in U.S. Treasury yields, though currencies traded in tight ranges as investors struggled to determine the impact of an escalating global trade war on U.S. inflation and growth. U.S. President Donald Trump on Wednesday threatened further tariffs on European Union goods, as major U.S. trading partners said...
MORNING BID EUROPE-Tariff worries weigh as CPI cheer fades
MORNING BID EUROPE-Tariff worries weigh as CPI cheer fades
Mar 12, 2025
A look at the day ahead in European and global markets from Kevin Buckland Wall Street's mild bounce on the back of a tame CPI reading did not provide much impetus for Asian markets, leaving European investors with little cause for optimism. One problem is that the inflation data, while offering some relief from the run of discouraging indicators lately,...
Copyright 2023-2026 - www.financetom.com All Rights Reserved