12082016Thu
Last update: Thu, 08 Dec 2016 02pm

Europe

Markets - Fixed Income - Europe

German two-year bond yield at record low on scarcity fears LONDON: Germany's two-year government bond yield hit a record low on Wednesday on expectations that the European Central Bank will extend its asset purchase programme beyond March 2017, exacerbating the scarcity of tradable bonds. The two-year German government bond, or "Schatz", dropped to minus 0.75 percent, having dipped below minus 0.70 percent for the first time in months on Tuesday.ING attributed the move to increasing collateral scarcity as short-dated German government bonds are often posted as collateral for short-term borrowing in repo markets."Not everyone has access to the ECB's deposit facility, so they turn to a safe place to put their cash," ING strategist Benjamin Schroeder said.The ECB's bond-buying programme, which has so far pumped well over 1 trillion euros into the system, has left many investors with an excess of cash.The trend has seen high-grade two-year government bonds trade at close to record lows. Dutch and French equivalent bonds ...

Markets - Fixed Income - Europe

Portugal 5-year borrowing costs rise in last auction of 2016 LISBON: Portugal's five-year borrowing costs rose on Wednesday in the last bond auction of the year following a wider sell-off in the global bond market in the aftermath of the US presidential election. State debt agency IGCP sold 700 million euros ($742.91 million) worth of bonds maturing in April 2021, just below the upper band of its offer range of between 500 million and 750 million euros.The allotment yield rose to 2.112 percent from 1.751 ...

Markets - Fixed Income - Europe

Euro zone bond yields rise on report ECB will act to reduce scarcity LONDON: Germany's two-year bond yields rose on Wednesday after a report that the European Central Bank is looking to lend out more bonds to avert a market freeze.The two-year Schatz yield shot up 6 basis points from the day's lows to minus 0.69 percent, having hit a record low earlier in the day. Other euro zone bond yields also rose, reversing earlier falls.Reuters reported sources as saying the ECB is looking for ways to lend ...

Markets - Fixed Income - Europe

Monte dei Paschi's bonds targeted by swap offer fall sharply MILAN: Bonds by Monte dei Paschi targeted by a debt-to-equity conversion offer fell sharply on Monday as retail investors worried about the future of Italy's third-largest bank. The debt swap is part of a 5 billion euro ($5.3 billion)rescue plan aimed at staving off the risk of being wound down.Shares in the lender fell 4 percent on Monday hit by the prospect of a Dec. 4 referendum vote in Italy that may prompt Prime Minister ...

Markets - Fixed Income - Europe

Romania rejects all bids at Nov. 2021 bond tender BUCHAREST: Romanian debt managers rejected all bids at a tender to sell a new benchmark bond issue maturing in Nov. 2021 on Monday, central bank data showed, the second failed auction since the US presidential election earlier this month. The finance ministry had planned to sell 500 million lei ($118.01 million) of the paper. In October, it sold bonds maturing in March 2021 at an average accepted yield of 2.14 percent.Monday's issue attracted total bids ...

Markets - Fixed Income - Europe

Portugal to hold last bond sale of 2016 on Wednesday LISBON: Portugal will offer up to 750 million euros ($794 million)in 5-year bonds in a regular auction on Nov. 23, which will conclude the country's bond issuance programme for the year, state debt agency IGCP said on Friday. The indicated offer range in the auction is between 500 million and 750 million euros. The maximum amount is slightly smaller than 1 billion euros cited by the Treasury earlier this month as the amount still to ...

Markets - Fixed Income - Europe

Italy bonds set for fourth straight week of losses LONDON: Italy's borrowing costs were set to climb for the fourth straight week on Friday, as the country bears the brunt of a sell-off that has gripped global bond markets. At one point the 10-year Italian government bond yield -- an indication of the rate at which it can raise money in markets -- was set for its biggest two-week rise since the 2012 euro zone debt crisis. As the session wore on some buying ...