Sun, February 25, 2024

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

The billionaire seeks people for a trip around the moon

Quick Look Intuitive Machines’ Nova-C lander, Odysseus, achieved the first private and

Joe Biden and his economic plan

Quick Look The S&P Global composite index indicates a slight economic expansion

Ahead Of The US CPI Release, The Dollar Rises On High Yields

Quick Look The US Dollar dips below 104.00 as risk sentiment improves,

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Your email address will not be published.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

Unlock Success: Marketrocks’ 2000+ Trading Instruments

Embarking on a narrative about Marketrocks, we delve into the essence of what makes this trading platform a beacon for investors navigating the tempestuous seas of the financial markets. This reimagined exploration aims

BROKER NEWS

Unlock Success: Marketrocks’ 2000+ Trading Instruments

Embarking on a narrative about Marketrocks, we delve into the essence of what makes this trading platform a beacon for investors navigating the tempestuous seas of the financial markets. This reimagined exploration aims to