AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)

Euro zone bond yields hold near one-month high after sell-off

  • German and Italian 10-year yields had their biggest one-day rise in nearly six months on Wednesday
Published August 26, 2021
Follow us

LONDON: Euro zone government bonds were steady in early trading on Thursday, with German and Italian yields holding near the one-month highs they reached in a sell-off the previous day.

German and Italian 10-year yields had their biggest one-day rise in nearly six months on Wednesday, in a move which analysts said was due to a combination of factors, including investors dumping bonds before the Federal Reserve's Jackson Hole summit and two European Central Bank officials sounding upbeat about the euro zone economic outlook.

Market attention this week has been largely focused on the annual Jackson Hole conference, and the possibility of US Federal Reserve Chair Jerome Powell's speech containing hints about his stance on tapering asset purchases.

Euro zone bond yields steady, flash PMI in focus

But as the event drew nearer, investors have lowered their expectations that Powell will make market-moving comments.

ING rates strategists wrote in a note to clients that Wednesday's sell-off was also due to investors anticipating a pick-up in debt supply.

"Heading into the September wall of supply, and into the Jackson Hole event risk, it makes sense for investors to shed their summer carry trades," ING said.

At 0724 GMT, Germany's benchmark 10-year yield was little changed at -0.419%, having reached as high as -0.415% on Wednesday.

Accelerating inflation and rising COVID-19 cases made German consumers more hesitant to buy in September, the GfK consumer sentiment index survey showed on Thursday.

Italy's 10-year yield was up by one basis point at 0.6804%, its highest since July 22.

Spain's 10-year yield was steady, also close to its highest in more than one month, at 0.311%.

Bond investors will be focused on European Central Bank speakers, including board member Isabel Schnabel who is due to speak at a roundtable at 1500 GMT.

The minutes of the ECB's July meeting will also be released later in the day.

"In view of the limited downside and more substantial upside potential to yields, we stick with our Bund short bias but see room for some near-term consolidation as the market looks oversold after yesterday's sell-off near -0.4% in 10-year yields," Christoph Rieger, Commerzbank's head of rates and credit research, said in a client note.


Comments are closed.

Euro zone bond yields hold near one-month high after sell-off

Imran Khan seeks power even if it undermines country's foundations: PM Shehbaz

Pakistan 'verifying reports' over IS-K claiming attack on Kabul embassy

CM Punjab Parvez Elahi says 'Gen Bajwa showed us way towards PTI'

Fawad says PTI ‘preparing for elections’ as Imran withdraws offer for talks

Tweets case: Quetta court approves Azam Swati’s five-day physical remand

Russia will not export oil subject to Western price cap, says deputy PM

PTI in front seat in second phase of AJK local govt polls

Air pollution hurts Bangladesh GDP as well as health: World Bank

India plans federal oversight of all real-money online games

PM Shehbaz felicitates people of Sindh on culture day celebrations