AIRLINK 145.00 Increased By ▲ 0.50 (0.35%)
BOP 10.17 Increased By ▲ 0.01 (0.1%)
CNERGY 7.20 Increased By ▲ 0.02 (0.28%)
CPHL 81.85 Increased By ▲ 0.45 (0.55%)
FCCL 44.85 Increased By ▲ 0.10 (0.22%)
FFL 15.05 Decreased By ▼ -0.05 (-0.33%)
FLYNG 53.75 Increased By ▲ 0.84 (1.59%)
HUBC 134.01 Decreased By ▼ -0.34 (-0.25%)
HUMNL 11.03 Decreased By ▼ -0.03 (-0.27%)
KEL 5.09 Increased By ▲ 0.04 (0.79%)
KOSM 5.59 Decreased By ▼ -0.01 (-0.18%)
MLCF 79.62 Increased By ▲ 0.12 (0.15%)
OGDC 211.75 Increased By ▲ 0.95 (0.45%)
PACE 5.80 Increased By ▲ 0.10 (1.75%)
PAEL 39.32 Decreased By ▼ -0.28 (-0.71%)
PIAHCLA 22.20 Increased By ▲ 0.50 (2.3%)
PIBTL 8.20 Increased By ▲ 0.05 (0.61%)
POWER 13.69 Increased By ▲ 0.19 (1.41%)
PPL 163.20 Increased By ▲ 1.20 (0.74%)
PRL 32.40 Increased By ▲ 0.20 (0.62%)
PTC 24.10 Increased By ▲ 0.65 (2.77%)
SEARL 84.50 No Change ▼ 0.00 (0%)
SSGC 43.45 Increased By ▲ 0.39 (0.91%)
SYM 14.60 Increased By ▲ 0.15 (1.04%)
TELE 7.58 Increased By ▲ 0.09 (1.2%)
TPLP 9.42 Increased By ▲ 0.03 (0.32%)
TRG 61.99 Increased By ▲ 0.39 (0.63%)
WAVESAPP 9.00 Decreased By ▼ -0.14 (-1.53%)
WTL 1.51 Increased By ▲ 0.02 (1.34%)
YOUW 4.65 Increased By ▲ 0.20 (4.49%)
BR100 12,963 Increased By 40.2 (0.31%)
BR30 37,145 Increased By 171.6 (0.46%)
KSE100 120,407 Increased By 404 (0.34%)
KSE30 36,544 Increased By 102.4 (0.28%)
Markets

Euro zone yields track US Treasuries lower, eyes on the ECB

  • Despite concerns about the ECB's possible exit from the purchase programme, "prospects for the periphery are improving near-term.
Published April 22, 2021

MILAN: Euro zone government bond yields edged lower on Thursday ahead of a European Central Bank (ECB) policy meeting, with investors looking for clues on how the central bank will react to an expected economic recovery.

The bloc's borrowing costs tracked US Treasury yields, falling in early London trade after an auction of 20-year bonds showed strong demand on Wednesday.

The ECB will likely be pressed on signs of divisions over the future pace of bond purchases, which have been stepped up recently to prevent a rise in borrowing costs from derailing the recovery.

Germany's 10-year government bond yield, the benchmark of the euro area, fell 1.5 basis points to -0.28%.

Christine Lagarde said recently the economy was still standing on "crutches" and stimulus could not be withdrawn.

"The focus at today's ECB press conference looks set to turn to the reduction and eventual winding down of the PEPP (Pandemic Emergency Purchase Programme) purchases," Commerzbank told clients.

Some analysts have recently flagged concerns about a possible "hawkish mistake" by the ECB in June following good news about the European economy.

"The ECB is unlikely to dismiss the possibility of taper in June, likely leaving our bearish tactical bias intact," Citi analysts said.

Italy's 10-year yield fell 1.5 basis points to 0.742%, with the risk premium on top of German bonds unchanged at around 101 basis points.

Despite concerns about the ECB's possible exit from the purchase programme, "prospects for the periphery are improving near-term.

The rejection of the preliminary injunction against NGEU (EU pandemic recovery fund) by the German Constitutional Court (GCC) was a surprise," Commerzbank analysts added.

Germany's constitutional court declined on Wednesday to block the recovery fund, but it did not indicate when it would rule on the full complaint against the fund.

France and Spain will be in the primary market with auctions, with analysts expecting supply to be absorbed well.

Comments

Comments are closed.