02102016Wed
Last update: Wed, 10 Feb 2016 10pm

Europe

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 target of just below 2 percent.The five-year, five-year breakeven forward, which shows where markets expect 2026 inflation forecasts to be in 2021, trades around 1.54 percent, a level last seen before the ECB's quantitative easing scheme was launched in March 2015.The main factor in reducing inflation expectations is the price of oil and more signs of a Chinese economic slowdown.Money markets are now pricing in a 90-100 percent chance of a 10 basis-point deposit rate ...

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 ...

Markets - Fixed Income - Europe

German bond yields rise as China's decline firms stimulus bets LONDON: Top-rated German bond yields rose on Tuesday as investors favoured riskier stocks after weak Chinese data fanned hopes for more monetary stimulus.Markets were seen in "risk on" mode after data showed that China grew at its slowest rate in a quarter of a century in 2015 and industrial and retail sales data missed forecasts.Further evidence of a slowdown in the world's second-largest economy not only firmed bets of a policy response from Beijing but ...

Markets - Fixed Income - Europe

Burned in December, markets see slim chance of ECB action this week LONDON: Financial markets have priced in only a marginal chance of a European Central Bank rate cut this week even with oil prices at just over half levels the ECB's 2016 staff forecasts are based on and long-term inflation expectations at 3-1/2 month lows.Euro zone bond yields edged higher on Monday and short-term interest rates held steady in a sign of caution after ECB President Mario Draghi unusually failed to meet the market's expectations in ...

Markets - Fixed Income - Europe

Portugal bond snapped up mainly by European investors LISBON: Portugal raised 4 billion euros ($4.34 billion) of 10-year bonds in a syndicated issue on Thursday, with demand coming mainly from European fund managers, the IGCP debt agency said. The bond was issued at mid-swaps plus 205 basis points, according to IFR. "The transaction benefited from the participation of a granular array of institutional investors," IGCP said in a statement. "The geographical distribution was diversified with large participation from investors based in the UK, ...

Markets - Fixed Income - Europe

Spanish yields rise before debt sale flurry LONDON:Spanish bond yields hit a 2016 high on Tuesday as investors, already factoring in risks stemming from inconclusive national elections and a renewed separatist push in Catalonia, geared up for a bumper week of debt issuance in Madrid. Having lined up 2018, 2020 and 2023 bonds for a 4-5 billion euros auction on Thursday, Spain has also mandated banks for a syndicated sale of a 2026 benchmark in coming days, subject to market conditions.Its borrowing ...