01172017Tue
Last update: Tue, 17 Jan 2017 11am

Europe

Markets - Fixed Income - Europe

Scarcity threat pushes German 2-year yields to record low LONDON: Two-year German government bond yields dropped to fresh record lows on Friday as banks loaded up on bonds likely to become scarcer after recent tweaks to the European Central Bank's asset purchase programme. On a day when most high-rated euro zone government bond yields were down 3-5 basis points, the yield on the German two-year government bond, or "Schatz", hit the minus 0.80 percent level for the first time.Earlier this month, the ECB said it would reconfigure its bond-buying scheme at the start of 2017, introducing changes that suggested it would focus its purchases on short-dated government bonds.It expanded the eligibility of the scheme to include bonds with maturities of one year and above and bonds yielding less than the deposit rate.Investors had already faced a shortage of short-dated bonds - which are used as collateral to borrow in money markets - before the changes, but these are expected ...

Markets - Fixed Income - Europe

Italian-German yield gap narrows on bank clean-up efforts LONDON: The premium over Germany that Italy pays to borrow in bond markets fell to its lowest in over a month on Tuesday as UniCredit announced Italy's biggest ever share sale in the latest bid to clean up its banking sector. The country's largest bank said it would raise 13 billion euros ($13.8 billion) to bolster its balance sheet, while new premier Paolo Gentiloni said he would be ready to support the banking sector as ...

Markets - Fixed Income - Europe

Yields on Belgian 3-month treasuries at new low BRUSSELS: Belgium sold 1.7 billion euros ($1.80 billion) of short-term debt at an auction of three- and 12-month treasury bills on Tuesday, with yields for the shortest maturity falling to new lows, the country's debt agency said. Three-month paper, the most frequently auctioned maturity, fell to a fresh low of minus 0.789 percent from a previous yield of minus 0.751 percent. 12-month treasury bills sold for a yield of minus 0.683 percent, slightly up from ...

Markets - Fixed Income - Europe

Euro zone bond yields fall as 'lower-for-longer' ECB brings comfort LONDON: Euro zone government bond yields fell on Friday as the market recovered from the shock of the ECB continuing its stimulus programme at reduced levels next year and shifted its focus to the bond-buying remaining in place for some time. The European Central Bank on Thursday said it would trim its monthly asset purchases to 60 billion euros from 80 billion euros from April, triggering a bond market sell-off as investors read the move ...

Markets - Fixed Income - Europe

Italian govt bond yields fall on Monte dei Paschi rescue   LONDON: Italian sovereign bond yields fell to near three-week lows on Wednesday amid reports that the government is preparing to rescue ailing lender Monte dei Paschi as hopes of a private recapitalisation fade.  Sources told Reuters Italy's government was preparing to take a 2 billion euro controlling stake in the bank by buying junior bonds held by ordinary Italians.  The government is already the bank's single largest shareholder with a 4 percent share. Buying junior bonds, which would be converted into ...

Markets - Fixed Income - Europe

Italian government bond yields fall on Monte dei Paschi rescue reports LONDON: Italian bond yields fell on Wednesday after reports the government is preparing to rescue ailing lender Monte dei Paschi as hopes of a private recapitalisation fade.  Sources told Reuters the government is preparing to take a 2 billion euros controlling stake in the bank, while Italian daily La Stampa reported the country is set to ask euro zone bailout fund ESM for a 15 billion euro loan for Monte dei Paschi and other struggling lenders.Italy's treasury declined comment on the ...

Markets - Fixed Income - Europe

Romania finmin plans to sell 3.87bn lei of debt in December BUCHAREST: Romania aims to sell 3.6 billion lei ($848.46 million) worth of leu currency bills and bonds in December, and an additional 270 million lei at non-competitive rounds of auctions, the finance ministry said on Monday. Debt managers sold an overall 1.95 billion lei worth of domestic leu debt in November. They sold less than planned and even scrapped two tenders altogether as the US election's unexpected win and expectations for a rise in US ...