Less Ads, More Data, More Tools Register for FREE

Euro zone bond yields dip, reflect caution about U.S. stimulus hopes

Fri, 9th Oct 2020 09:01

* Yields down marginally in another quiet session

* Italian 10-year flirts with new record low

* Euro zone periphery govt bond yields: http://tmsnrt.rs/2ii2Bqr

By Tommy Wilkes

LONDON, Oct 9 (Reuters) - Euro zone yields edged lower in
early trading on Friday, with fixed income investors remaining
cautious despite renewed hopes for a U.S. stimulus deal helping
to lift sentiment in other markets.

Stocks rallied after U.S. President Donald Trump said on
Thursday talks with Congress had restarted on targeted fiscal
relief, after calling off negotiations earlier this week.

Investors are also betting that Joe Biden, Trump's
challenger in the Nov. 3 presidential election, will win,
potentially leading to a bigger stimulus package.

But bond markets were quiet, with yields inching lower. Euro
zone yields have held to tight ranges in recent weeks and
volatility has been low, which analysts attribute to a wave of
central bank asset purchases that has crushed price action.

On Friday, the 10-year German bond yield was unchanged at
-0.525% while other core yields were a touch lower

Analysts said investors’ reluctance to dump government bonds
was a sign that momentum behind recent asset price rallies was

Mizuho analysts said the resilience of the bond market was
"another sign that the momentum behind further risk-on is

"We expect rates to be bullish today with the possibility
for the 10Y Bund (10-year German bond), to break through its
recent resistance level," they wrote.

Yields in southern Europe also headed marginally lower, with
the Italian 10-year flirting with another record low. It was
last at 0.71%.
(Editing by Mark Potter)

More News

UPDATE 1-IMF will explore options for re-allocating reserves to raise $100 bln for poor countries

(Adds quotes)WASHINGTON, June 13 (Reuters) - The International Monetary Fund on Sunday welcomed the Group of Seven's support for expanding the global lender's emergency reserves by $650 billion and said it would work with members on ways to provid...

Today 16:58

UPDATE 1-G7 leaders agreed to coordinate China approach much more closely - Canada PM Trudeau

(Releads with fresh quotes from Trudeau about China, background)June 13 (Reuters) - Group of Seven leaders on Sunday agreed to coordinate their response to the challenges posed by China "much much more closely", Canadian Prime Minister Justin Trud...

Today 16:52

UPDATE 1-Macron says we love sausage but let's not waste time on this

(Adds quotes)CARBIS BAY, France, June 13 (Reuters) - President Emmanuel Macron on Sunday said that France respects Britain's sovereignty but it is time to end rows over sausages and focus on more serious issues.Tensions between Britain and the Eu...

Today 16:30

UK records another 7,490 COVID cases, 8 deaths

CARBIS BAY, England, June 13 (Reuters) - The United Kingdom has recorded another 7,490 daily COVID-19 cases and the deaths of 8 people who tested positive for the virus within 28 days, official data shows.The 7,490 cases was down slightly from th...

Today 16:01

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.