Speakers from Touchstone Exploration, Shanta Gold, Savannah Resources and Kavango Resources feature in our Natural Resources webinar on May 25th. Please register here.

Less Ads, More Data, More Tools Register for FREE

German bond yields dip after Fed meeting

Thu, 17th Sep 2020 08:37

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

By Yoruk Bahceli

AMSTERDAM, Sept 17 (Reuters) - German government bond yields
dipped on Thursday after the U.S. Federal Reserve kept interest
rates unchanged, with inflation looking likely to remain subdued
for three years.

The U.S. central bank promised to keep rates near zero until
inflation is on track to "modestly exceed" its 2% target.

New economic projections released with the policy statement
showed most policymakers see interest rates on hold through to
at least 2023, with inflation not breaching 2% over that period.

While U.S. Treasury yields initially rose after the decision
they fell in early Thursday trade and stocks took a
hit. European stocks were set to open the session lower.

"It basically shows that it's hard to please markets that
are used to massive amounts of central bank action," said DZ
Bank rates strategist Christian Lenk.

"I think that that really shows the big point is the Fed is
going to stick to its unchanged ... rate policy until the end of
2023 and well, at the end of the day, this is not enough for
equity markets to cheer."

Safe-haven German 10-year bond yields were last unchanged at
-0.48% after falling about 1 basis point in early trade
. Italian 10-year yields were up 2 basis points at
0.99% after hitting six-month lows on Wednesday.

In Europe, attention is likely to remain on central bank
speakers on Thursday, with European Central Bank board member
Luis de Guindos due to give a speech at 0800 GMT.

Several policymakers have made dovish statements this week,
after the ECB gave an unexpectedly sanguine policy message last
week, while markets were expecting a more dovish tone given the
bloc's negative inflation reading in August and the appreciation
of the euro.

In the primary market, France will raise up to 8.5 billion
euros from bonds due in 2023, 2026 and 2028, and up to 1.25
billion euros from inflation-linked bonds due 2026, 2030 and
2047. Spain will also raise up to 5 billion euros from bonds due
in 2023, 2027, 2041 and 2050.

There is also some focus on the Bank of England's policy
decision, due at 1200 GMT.
(Reporting by Yoruk Bahceli; Editing by Kevin Liffey)

More News

IN BRIEF: Chrysalis switches alternative investment manager to Jupiter

IN BRIEF: Chrysalis switches alternative investment manager to Jupiter

Today 14:12

Former John Lewis boss Paula Nickolds joins Sainsbury's

Former John Lewis boss Paula Nickolds joins Sainsbury's

Today 14:11

LIVE MARKETS-Does Bitcoin have the S&P 500 on borrowed time?

* U.S. equity index futures mixed, little changed* U.S. initial jobless claims +498k vs +540k estimate* Euro STOXX 600 index down ~0.3%* Dollar off slightly; gold up, crude falls* U.S. 10-Year Treasury yield ~1.58%May 6 - Welcome to the home for real...

Today 14:05

UPDATE 1-Bacanora shares surge after $264.5 mln takeover by Ganfeng Lithium

(Updates with detail, shares)LONDON, May 6 (Reuters) - Shares in Bacanora Lithium rose as much as 30% on Thursday after China's Ganfeng Lithium, one of the world's top lithium producers, agreed to buy the shares it does not already own for up to 1...

Today 14:03

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.