08252016Thu
Last update: Thu, 25 Aug 2016 02am

Europe

Markets - Fixed Income - Europe

German 10-year Bund yield turns negative for first time at auction BERLIN: Germany's 10-year government bond yield turned negative for the first time at an auction on Wednesday, fetching the lowest average real yield at auction on record for such paper at -0.05 percent, the debt office said.The German Finance Agency, the federal government's debt management office, sold 4.038 billion euros ($4.47 billion) of its new 0.00 percent, 10-year Bund at the lowest price of 100.48 with a bid-to-cover ratio of 1.2."It's the first time that a 10-year Bund fetched a negative yield during an auction," a debt office spokesman said, adding that market liquidity for Bunds was very high and that investors were attracted by Germany's top notch credit rating.A backdrop of unprecedented monetary stimulus from the European Central Bank and mounting political risks in Europe, including Brexit, have boosted demand for German bonds - seen as one of the safest assets in the world.Auction details in German can be ...

Markets - Fixed Income - Europe

Henderson property fund manager puts London HQ of Coutts bank up for sale LONDON: The manager of fund firm Henderson Global Investors' frozen UK property fund has put the London headquarters of British private bank Coutts up for sale, a source familiar with the matter said on Tuesday. The Henderson 3.9 billion pound ($5.13 billion) UK PAIF Property and PAIF Feeder Fund is one of seven UK property funds that have suspended trading in order to control redemptions by retail investors following Britain's vote to leave the European ...

Markets - Fixed Income - Europe

Italian yields rise as post-Brexit slide in euro zone borrowing costs halts LONDON: Italian government bonds rose on Monday as worries about the country's banks and some 20 billion euros of issuance in the region this week combined to brake a post-Brexit tumble in regional borrowing costs. Italy's banking sector is saddled with 360 billion euros of bad loans, a third of the euro zone total, and recent market turmoil has raised concern it might be hard for Italian lenders to raise capital in the market without ...

Markets - Fixed Income - Europe

Poland says plans to convert OFE pension funds into mutual funds WARSAW: Poland plans to convert state-guaranteed OFE private pension funds into mutual investment funds that will manage 103 billion zlotys ($26 billion) worth of assets, economy minister Mateusz Morawiecki said on Monday. The remaining 35 billion zlotys now held by the OFE pension funds are to be transferred to the state-run demographic reserve fund, Morawiecki said.Copyright Reuters, 2016 ...

Markets - Fixed Income - Europe

Spain to issue bonds due 2021, 2024, 2025 and 2030 on Thursday MADRID: Spain plans to issue bonds due 2021, 2024, 2025 and 2030 at the next scheduled bond auction on Thursday, the Treasury said on Friday. The 2024 bond is inflation linked and is due November 30 of that year with a 1.8 percent coupon. The other bonds are due July 30, 2021, with a 0.75 percent coupon, July 30, 2025, with a 4.65 percent coupon and July 30, 2030, with a 1.95 percent coupon. The ...

Markets - Fixed Income - Europe

Greece to auction 1.25bn euros of 6-month T-bills on July 6 ATHENS: Greece will sell 1.25 billion euros ($1.39 billion) of six-month treasury bills on July 6 to refinance a maturing issue, debt agency PDMA said on Friday. Athens successfully rolled over six-month T-bills last 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 July 8. Only primary dealers ...

Markets - Fixed Income - Europe

Euro zone yields slide, Spanish, Italian yields set for biggest weekly fall since 2012 LONDON: Borrowing costs across the euro zone sank to new lows on Friday, with yields in Spain, Italy and Ireland set for their biggest weekly fall in almost four years on rising expectations of central bank policy action following Brexit. Spain and Italy, where 10-year yields hit their lowest in more than a year, saw the most pronounced market moves amid talk about changes to the European Central Bank's asset purchase programme that could benefit ...