05022016Mon
Last update: Mon, 02 May 2016 04am

Europe

Markets - Fixed Income - Europe

UK 5-year gilt yield hits lowest since 2013 ahead of BoE outlook LONDON: British five-year gilt yields fell to their lowest level since mid-2013 on Wednesday, after weak U.S. economic data underlined why Bank of England officials are likely to strike a cautious tone in their latest economic outlook.Government bonds around the world rallied after figures showed activity in the vast U.S. services sector slowed to its lowest in nearly two years last month, suggesting economic growth weakened in the world's largest economy.The five-year gilt yield slipped to 0.834 percent, its lowest level since May 2013, before recovering to 0.876 percent by the close of trading, down 2 basis points on the day.Signs of slowing U.S. growth will do little to quell unease about the world economy among BoE policymakers, who set out their quarterly outlook at 1200 GMT on Thursday.Financial markets are fully pricing in a first BoE rate hike only for mid-2018, and assign a roughly 30 percent chance of ...

Markets - Fixed Income - Europe

Russia aims to get at least 110 bln rbls in extra dividends from state firms in 2016 MOSCOW: Russia's state property agency has proposed to increase dividend payments by state firms this year in order to get no less than 110 billion roubles ($1.4 billion) in extra budget revenues if the decision is approved, said agency head Olga Dergunova."As you know, 25 percent is a standard (divident payment), and state firms do not pay less than this amount to the budget. We have proposed to increase this percentage this year, and if ...

Markets - Fixed Income - Europe

German five-year bond yields fall below ECB deposit rate LONDON: Yields on German government bonds of up to five years' maturity traded below the European Central Bank's deposit rate on Monday as money market rates reflected expectations of two further 10 basis point cuts in 2016.The Bank of Japan's unexpected cut in a benchmark interest rate to below zero on Friday has supported bond markets around the world. The move highlighted the challenges that major central banks face in lifting inflation at a time ...

Markets - Fixed Income - Europe

Fed dovishness pushes down euro zone bond yields LONDON: Euro zone bond yields fell on Thursday, mirroring an earlier move in U.S. Treasuries, after the Federal Reserve was deemed to have struck a dovish tone by acknowledging recent market volatility.German 10-year yields - the euro zone's benchmark - fell 2 basis points to 0.35 percent, their lowest since April 2015. U.S. Treasury yields dropped 6 bps from their day's high of 2.05 percent after the statement was released late on Wednesday.Strategists said the ...

Markets - Fixed Income - Europe

German two-year yields hit new low as March ECB cut priced in LONDON: German two-year bond yields hit a record low on Tuesday as another fall in oil prices prompted a dip in money market rates, implying that investors expect the European Central Bank to cut its deposit rate in March.After suggesting on Thursday the ECB may ease monetary policy further at its next meeting, President Mario Draghi repeated a promise on Monday to increase inflation.However, market-based inflation expectations on any time horizon remain below the ECB's ...

Markets - Fixed Income - Europe

Oil price shock takes German yields to lowest since May sell-off LONDON: German 10-year Bund yields fell on Wednesday to their lowest levels since last May's dramatic bond sell off, as sliding oil prices rattled global markets and fuelled talk that the ECB may need to take further steps soon to lift inflation.Bund yields tumbled almost 8 basis points to 0.406 percent , suffering their biggest daily sell off since the first trading day of the year. They have not ventured far from the 0.50 percent ...

Markets - Fixed Income - Europe

Austrian province making 75pc buyback offer for Heta bonds VIENNA: The Austrian province of Carinthia is offering to buy back the senior bonds of "bad bank" Heta Asset Resolution at 75 percent of their nominal value with interest, a special-purpose vehicle created by the province said on Wednesday.The province guaranteed the debt of defunct lender Hypo Alpe Adria, from which Heta was formed. It is aiming to buy back guaranteed bonds with a total nominal value of 11 billion euros ($12.1 billion), dwarfing its ...