LONDON: Euro zone bond yields were little changed on Tuesday, with the focus of global markets on the Bank of Japan, which ended eight years of negative interest rates.
Euro zone bond yields tick up, inflation data in focus
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Germany’s 10-year bond yield, the benchmark for the euro zone, was last up less than 1 basis point (bp) at 2.462%.
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The 10-year yield has risen over the past week as US economic data has come in stronger than expected, causing investors to rein in bets on Federal Reserve rate cuts.
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Germany’s 2-year bond yield was also up less than 1 bp at 2.923%.
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The BOJ set the overnight call rate as its new policy rate and decided to guide it in a range of 0-0.1%. Its key rate previously stood at -0.1%.
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Analysts told Reuters that rates would most likely have to rise further before Japanese investors started pulling out of foreign bond markets to return cash home.
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