AVN 65.45 Increased By ▲ 0.50 (0.77%)
BAFL 30.65 Decreased By ▼ -0.86 (-2.73%)
BOP 4.83 Increased By ▲ 0.04 (0.84%)
CNERGY 3.72 Decreased By ▼ -0.12 (-3.13%)
DFML 14.26 Decreased By ▼ -0.15 (-1.04%)
DGKC 41.06 Decreased By ▼ -0.54 (-1.3%)
EPCL 46.56 Decreased By ▼ -0.14 (-0.3%)
FCCL 11.35 Increased By ▲ 0.06 (0.53%)
FFL 5.03 Decreased By ▼ -0.02 (-0.4%)
FLYNG 5.78 Decreased By ▼ -0.04 (-0.69%)
GGL 10.28 Decreased By ▼ -0.17 (-1.63%)
HUBC 67.03 Increased By ▲ 1.39 (2.12%)
HUMNL 5.68 Increased By ▲ 0.02 (0.35%)
KAPCO 27.85 Increased By ▲ 0.10 (0.36%)
KEL 2.19 Increased By ▲ 0.04 (1.86%)
LOTCHEM 24.83 Increased By ▲ 0.48 (1.97%)
MLCF 21.37 Decreased By ▼ -0.11 (-0.51%)
NETSOL 84.20 Decreased By ▼ -0.59 (-0.7%)
OGDC 85.94 Decreased By ▼ -1.31 (-1.5%)
PAEL 11.01 Increased By ▲ 0.03 (0.27%)
PIBTL 4.17 Decreased By ▼ -0.05 (-1.18%)
PPL 74.56 Decreased By ▼ -1.14 (-1.51%)
PRL 13.40 Decreased By ▼ -0.25 (-1.83%)
SILK 0.92 Increased By ▲ 0.03 (3.37%)
SNGP 40.44 Decreased By ▼ -0.89 (-2.15%)
TELE 5.86 Increased By ▲ 0.01 (0.17%)
TPLP 15.42 Decreased By ▼ -0.22 (-1.41%)
TRG 111.63 Decreased By ▼ -0.07 (-0.06%)
UNITY 13.76 Decreased By ▼ -0.22 (-1.57%)
WTL 1.14 Decreased By ▼ -0.02 (-1.72%)
BR100 4,037 Decreased By -26.9 (-0.66%)
BR30 14,412 Decreased By -56.6 (-0.39%)
KSE100 40,471 Decreased By -262.4 (-0.64%)
KSE30 15,163 Decreased By -67.2 (-0.44%)
Business & Finance

European yields lower before ECB meeting; focus on stimulus, Brexit

  • A two-day EU summit begins Thursday, and the bloc is ready to set up its planned EU stimulus without Hungary and Poland, which are maintaining their veto of the EU budget.
Published December 8, 2020
Follow us

MILAN: Euro zone government bond yields edged lower on Tuesday before the European Central Bank meets later this week, while uncertainty remained over Brexit and a European Union recovery fund.

A two-day EU summit begins Thursday, and the bloc is ready to set up its planned EU stimulus without Hungary and Poland, which are maintaining their veto of the EU budget.

British and EU leaders will meet face to face to try to seal a post-Brexit trade deal after failing again to narrow their differences on Monday, increasing the chance of a disorderly split at the end of the month.

British borrowing costs were down, after falling 7 basis points to 0.28% on Brexit worries on Monday. The benchmark 10-year Gilt yield dropped 1 basis point.

Bunds are supported as Brexit, an EU recovery fund and a U.S. stimulus plan all remain deadlocked, according to Commerzbank analysts.

The U.S. Congress will vote this week on a one-week stopgap funding bill to provide more time for lawmakers to reach a deal on COVID-19 relief and an overarching spending bill to avoid a government shutdown.

The yield on Germany's benchmark 10-year Bund was down 1 basis point, after dropping 4 basis points on Monday, to a one-week low.

"The ECB bid makes the difference, keeping a lid on nominal yields, which means falling real yields as inflation expectations normalize," Commerzbank added.

Analysts expected Thursday's ECB policy meeting to increase and extend the Pandemic Emergency Purchase Programme (PEPP) and a more-generous Targeted Longer-Term Refinancing Operation (TLTRO).

However, Deutsche Bank analysts said "there is likely to be more than just an extension of PEPP net purchases and the TLTRO discount beyond mid-2021."

Comments

Comments are closed.

European yields lower before ECB meeting; focus on stimulus, Brexit

At least five injured in explosion near Quetta Police Lines

PM vows ‘zero tolerance’ to terrorism

Pakistan expresses unflinching support for Kashmiris on Solidarity Day

Foreign authorities seeking properties/bank accounts info: FBR won’t intimate concerned taxpayer about request

Dar chairs meeting on role of PDFL, SOEs

WB board to consider $78m ‘digital economy’ project next month

PM directs PD to recover Rs1.13bn royalty amount from 2 oil, gas cos

India to ban Chinese-linked betting and loan lending apps

Section 144 imposed in Peshawar

Imran talks of ‘jail bharo’ movement soon