05272016Fri
Last update: Fri, 27 May 2016 05pm

Europe

Markets - Fixed Income - Europe

Germany cuts public debt to 2.15 trillion euros in 2015 FRANKFURT: Germany, Europe's biggest economy, shaved 24 billion euros ($27 billion) off its overall public debt burden to 2.153 trillion euros in 2015, the country's central bank, or Bundesbank, said on Thursday.Measured against the gross domestic product (GDP), that meant Germany's total public debt ratio fell to 71.2 percent last year from 74.7 percent in 2014, the Bundesbank calculated.Under EU rules, a member state's overall debt must not exceed 60 percent of GDP.Nevertheless, the EU average stands at 86 percent and Germany has pledged to bring its own debt back below the 60-percent limit by 2020.Germany's public finances have been in surplus since 2014, thanks to the robustness of its domestic economy and low interest rates and the government is using the budget surplus to bring down its overall debt. The Bundesbank calculated that GDP growth of 1.6 percent last year accounted for 2.7 percentage points of the reduction in ...

Markets - Fixed Income - Europe

German bond yields set for biggest quarterly fall in 4-1/2 years LONDON: Europe's benchmark German government bond yields are set to record their biggest quarterly fall in 4-1/2 years on Thursday, with fresh rounds of central bank monetary easing and concerns about the global economy driving demand for the top-rated debt.With scant signs of any uptick in growth or inflation reversing the trend any time soon, many analysts expect German bonds to keep performing, hastened by the ECB buying up a large share of euro zone ...

Markets - Fixed Income - Europe

Bund yields grind lower as Fed's Yellen takes ‘cautious’ stance LONDON: German 10-year Bund yields slipped closer to their record lows on Wednesday after Federal Reserve Chair Janet Yellen said the U.S. central bank should proceed "cautiously" in raising interest rates.Her comments contrasted with those of some top Fed officials who in recent days said the U.S. economy was strong enough to warrant further rate hikes despite uncertainty about Chinese growth and turmoil in the oil market.Yellen's stance adds to pressure on the European Central ...

Markets - Fixed Income - Europe

Drop in oil prices pushes German Bund yields to four-week lows LONDON: German 10-year Bund yields hit four-week lows on Tuesday as cheap oil held inflation expectations below the levels seen before the European Central Bank unveiled its last monetary policy easing package.Oil prices are up about 50 percent from 12-year lows hit in mid-February but they have been weakening in the past week. Brent crude fell 70 cents to $39.57.Long-term inflation expectations, as defined by five-year, five-year breakeven forwards, which show where markets expect 2026 ...

Markets - Fixed Income - Europe

Italy and Germany to sell bonds next week LONDON: Italy and Germany are the euro zone countries scheduled to sell bonds next week. - Italy plans to auction 3.0-3.5 billion euros of new 0.45 percent five-year BTPs on Wednesday. It is also scheduled to sell 2.5-3.0 billion euros of 1.6 percent 10-year BTPs and 1.0-1.5 billion euros of floating-rate CCTeu certificates expiring on Dec. 15, 2022. - Germany plans to sell up to 4 billion euros of five-year bonds, also on Wednesday. Copyright ...

Markets - Fixed Income - Europe

Upbeat Fed speakers, supply push euro zone bonds yields up LONDON: Euro zone bond yields crept up on Wednesday, taking their cue from a rise in U.S. Treasury yields following bullish comments on the U.S. economy from Chicago's Federal Reserve president.Regional markets were also anticipating new supply, with Germany to sell 1 billion euros of 30-year bonds, while Portugal was due to auction bonds maturing in 2021 and 2030.U.S. Treasury yields rose after Chicago Fed President Charles Evans said on Tuesday he expects two more ...

Markets - Fixed Income - Europe

German yields briefly hit two week lows after Brussels attacks LONDON: Top-rated German bond yields bounced off two-week lows on Tuesday as a rush to traditional safe haven assets after attacks in Brussels subsided and investors refocused on signs of business optimism in the bloc.The European benchmark yield, which moves inversely to prices, fell 4 basis points to 0.18 percent in early trading, after reports of explosions at Brussels airport and a metro station.But by 1200 GMT, German 10-year yields had edged back up to ...