01192017Thu
Last update: Thu, 19 Jan 2017 01pm

Europe

Markets - Fixed Income - Europe

Bonds firm as Poland holds rates, Czech auction demand hits record BUDAPEST/PRAGUE: Central European government bonds firmed on Wednesday as record demand at Prague's first auction this year drove yields deeper into negative territory and Poland's central bank held policy steady.Demand for Czech zero-coupon bonds due in 2018 jumped to a 32.3 billion crowns ($1.26 billion). The average yield was set at an all-time low -1.722 percent.Short-term Czech papers trade at yields well below safe-haven Bunds as investors expect the Czech central bank (CNB) to drop its cap on the crown currency strength by mid-2017. That could lead to a 3.5 percent surge of the crown by year-end according to a Reuters poll of analysts.The CNB introduced the cap in late 2013 to fight deflation risks.But inflation rose to its 2 percent target by December and recent Czech economic figures have been robust, including 7.9 percent annual surge in November retail sales.The bank has more than doubled foreign exchange reserves since ...

Markets - Fixed Income - Europe

Demand for Portugal 10-year euro bond exceeds 8.5bn LONDON: Demand for Portugal's April 2027 euro-denominated benchmark bond is in excess of 8.5bn, according to a lead. Guidance for the trade has been revised to 352bp-355bp over mid-swaps, down from initial price thoughts of plus 360bp area and guidance of plus 355bp to 360bp, released earlier on Wednesday. If the deal prices at the top end of revised guidance, Portugal will pay a yield of about 4.25pc on the transaction. BBVA, HSBC, JP Morgan, ...

Markets - Fixed Income - Europe

Portugal seeks to raise funds in toughest bond sale in years LONDON: Portugal is seeking to raise funds through a syndicated sale of bonds just as a persistent banking crisis, reduced support from the European Central Bank and a sluggish economy have pushed its borrowing costs to one-year highs. Portugal's finance minister Mario Centeno told Reuters in an interview that a syndicated bond issue -- under which banks distribute new bonds to a variety of investors -- is likely to be launched soon. Two primary dealers ...

Markets - Fixed Income - Europe

Euro zone bond yields set for biggest weekly rise in weeks on inflation jitters LONDON: Euro zone government bond yields were set to end the first trading week of the year with their biggest weekly rise in at least a month, a sign that a pick-up in inflation is starting to unnerve bond investors. The start of 2017 has been dominated by investor worries that rising inflation could erode the value of bonds, pushing yields - which move in the opposite direction to prices - sharply higher.The trigger for ...

Markets - Fixed Income - Europe

Greece to auction 1.25bn euros of 6-month T-bills on Jan. 4 ATHENS: Greece will sell 1.25 billion euros ($1.32 billion) of six-month treasury bills on January 4 to refinance a maturing issue, debt agency PDMA said on Friday. Athens successfully rolled over six-month T-bills earlier this month, with the paper priced to yield 2.97 percent. In a rollover, T-bill holders renew their positions instead of getting paid on the maturing paper they hold. The settlement date of the new bills will be January 9. Only primary ...

Markets - Fixed Income - Europe

UK gilt yields fall to six-week low in thin pre-Christmas trade LONDON: British government bond yields hit a six-week low on Friday in thin trade before Christmas holidays, shrugging off stronger-than expected British growth data and instead taking their lead from signs of progress in Italy's banking troubles.Ten-year gilt yields dropped as much as 4 basis points on the day to 1.333 percent at 1210 GMT, a level last seen on Nov. 10 when yields were climbing rapidly due to inflation worries after Donald Trump's US ...

Markets - Fixed Income - Europe

Spanish bond yields hit 5-week low as dangerous cocktail brews in Italy LONDON: Spanish government bond yields hit five-week lows on Wednesday as investors shifted money out of similiarly rated Italian debt where bank bailouts and political uncertainty have created what ING strategists called a "dangerous cocktail". The gap between yields on Spanish and Italian 10-year debt nudged back above 50 basis points (bps), a level last breached in the days after a failed constitutional reform vote triggered the resignation of Italian prime minister Matteo Renzi.While Renzi ...