06262016Sun
Last update: Sun, 26 Jun 2016 02pm

Europe

Markets - Fixed Income - Europe

Syndication of ultra-long UK gilt draws second-highest demand ever LONDON: Britain's sale of an ultra-long bond drew the second-highest demand ever for a launch via syndication thanks to interest from pension funds, despite financial market volatility ahead of a referendum on the country's membership of the European Union.Britain's Debt Management Office sold 4.75 billion pounds ($6.95 billion) of the 2.5 percent July 2065 bond at an average yield of 2.2905 percent.The sale attracted orders worth 21.3 billion pounds and will increase the total amount of the bond in issue to 9.5 billion pounds, following record demand of 21.9 billion pounds at the bond's launch in October 2015.Thirty-year gilt yields rose to a three-month high of 2.476 percent as investors absorbed the issue, leading to price falls across maturities in the gilt market, which was also under pressure from falls in the price of German debt."There remains significant interest in acquiring ultra-long gilts in the context of ongoing demand from ...

Markets - Fixed Income - Europe

Euro zone's low yields finally turning foreign investors away LONDON: Foreign investors have been selling long-dated euro zone bonds on a scale not seen in seven months, a sign of growing reluctance to hold debt with an ultra-low or negative yield.Overseas holders sold a net 42 billion euros worth of long-dated government bonds in February, according to ECB balance of payments data. Societe Generale head of fixed income and forex strategy Vincent Chaigneau blamed the change in sentiment on low yields."Once we got past ...

Markets - Fixed Income - Europe

Bund yields touch five-week high as ESM supply weighs LONDON: German Bund yields hit a five-week high on Monday, reversing early falls, as investors anticipated a new bond issue from the European Stability Mechanism (ESM), the euro zone's crisis resolution fund.The ESM on Monday mandated banks for a 16-year benchmark due on 3 May 2032, IFR reported."Reports that banks are syndicating a 16-year benchmark for ESM is pushing bond yields higher," said Mizuho strategist Peter Chatwell. "But markets are thin and there doesn't appear ...

Markets - Fixed Income - Europe

German Bund yields hold above 0.2pc as market nurses losses LONDON: German Bund yields held above 0.2 percent on Monday, hovering near recent one-month highs amid some nervousness ahead of this week's central bank meetings in the US and Japan. Bund yields ended Friday with their biggest weekly rise since last December after a rebound in oil prices and a wait-and-see message from the European Central Bank at a policy meeting on Thursday.Focus now turned to the US Federal Reserve, which meets on Wednesday, and ...

Markets - Fixed Income - Europe

Bund yields rise above 0.20 percent as oil price hits five-month high LONDON: German 10-year Bund yields rose above 0.20 percent for the first time in a month on Thursday as oil prices jumped to a five-month high, supporting the outlook for inflation and investor appetite for riskier assets.The European Central Bank is widely expected to refrain from further economic stimulus at its policy meeting on Thursday, providing little additional support for bonds.German yields - the bloc's benchmark - rose 6 basis points to 0.21 percent, pulling ...

Markets - Fixed Income - Europe

Euro zone yields rise as oil price hits five-month high LONDON: Euro zone bond yields rose on Thursday as oil prices jumped to a five-month high, supporting the outlook for inflation, and as investors turned to riskier assets such as stocks. The European Central Bank is widely expected to refrain from further economic stimulus at its policy meeting on Thursday, providing little additional support for bond yields.German 10-year yields -- the bloc's benchmark -- rose 3 basis points to 0.18 percent, pulling away from 0.05 ...

Markets - Fixed Income - Europe

Bund yields fall with long-term inflation measure back below 1.40pc LONDON: German bond yields fell on Wednesday, hauled down by a drop in long-term inflation expectations and relief that a sale of 10-year debt went smoothly.Significant market moves were capped a day before a European Central Bank meeting, even though investors do not expect any new hints of easing following last month's stimulus measures.Germany sold about 3.2 billion euros of bonds in a top-up of its 0.50 percent 10-year Bund at an average yield of ...