Mon, January 30, 2023

Eurozone Bond Yields Decrease

Wibest – Eurozone: A man counting euro bills.

After a sharp decline in eurozone government bond yields on Tuesday due to the Bank of Japan’s decision to maintain its ultra-loose monetary policy, there was a slight decline on Wednesday in choppy trading.

The yield on Germany’s 10-year government bonds, which serves as the benchmark for the currency union, was last down two basis points (bps) at 2.068% after fluctuating by about two bps on either side of zero in morning trading. Prices and yields follow opposite trends.

The yield on the benchmark 10-year note decreased by more than ten basis points on Tuesday, suggesting that European Bank policymakers were more likely to consider a smaller, 25 bps interest rate increase at their meeting in March. According to the report, we should still expect a 50 bps increase in February.

Overall, a Positive Sentiment

The decline in energy prices has eased worries about inflation and interest rate increases, and the benchmark German yield is now well below the 11-year high of 2.569% reached at the beginning of the year.

The Bank of Japan, through which it anchors the 10-year bond yield at roughly 0%, was the subject of Wednesday’s attention on the international financial markets. Also maintained at -0.1% were short-term interest rates.

Germany’s 2-year bond yield last increased three basis points to 2.488% on Wednesday after falling earlier in the session and by 11 basis points on Tuesday.

Italy’s 10-year yield was down four bps at 3.853% simultaneously. After reaching an 8-month low of 175 bps earlier, Germany and Italy’s 10-year yields rose to 178 bps.

After shocking the markets in December by abruptly enlarging the trading band for the 10-year bond to 50 basis points on either side of 0%, a move widely interpreted as a sign that more changes were on the way, many investors anticipated the BOJ to loosen policy further.

YOU MAY ALSO LIKE

Oil might reach $150 per barrel as OPEC+ will control supply

The biggest oil and gas companies are prepared to report annual profits,

Sterling declined on Thursday. What about Euro and Dollar?

Sterling fell slightly on Friday but was still close to its highest

Nokia Beats Exceeds Earnings Predictions

Nokia Oyj’s earnings topped expectations. Even amid a worse macroeconomic backdrop, as

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of

BROKER NEWS

Broker News

OANDA Japan: No More fxTrade, USD/JPY Margin Shift

On Friday, one of Japan’s longest-standing online forex and CFD brokerages, OANDA Corporation, announced major changes to their service.  Specifically, the Japanese subsidiary of the brokerage will no longer allow new downloads of its