BAFL 46.54 Decreased By ▼ -0.21 (-0.45%)
BIPL 21.04 Increased By ▲ 0.68 (3.34%)
BOP 5.54 Increased By ▲ 0.23 (4.33%)
CNERGY 4.85 No Change ▼ 0.00 (0%)
DFML 18.82 Increased By ▲ 1.67 (9.74%)
DGKC 80.50 Increased By ▲ 1.65 (2.09%)
FABL 30.95 Increased By ▲ 1.71 (5.85%)
FCCL 20.49 Increased By ▲ 0.14 (0.69%)
FFL 9.59 Decreased By ▼ -0.07 (-0.72%)
GGL 13.94 Increased By ▲ 1.19 (9.33%)
HBL 116.96 Increased By ▲ 2.68 (2.35%)
HUBC 123.62 Decreased By ▼ -0.18 (-0.15%)
HUMNL 7.98 Increased By ▲ 0.40 (5.28%)
KEL 3.52 Increased By ▲ 0.19 (5.71%)
LOTCHEM 28.59 Increased By ▲ 0.34 (1.2%)
MLCF 42.10 Increased By ▲ 0.10 (0.24%)
OGDC 123.10 Increased By ▲ 8.99 (7.88%)
PAEL 18.82 Decreased By ▼ -0.03 (-0.16%)
PIBTL 5.71 Increased By ▲ 0.11 (1.96%)
PIOC 114.50 Increased By ▲ 0.60 (0.53%)
PPL 110.98 Increased By ▲ 11.52 (11.58%)
PRL 27.52 Increased By ▲ 0.76 (2.84%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
SNGP 70.09 Increased By ▲ 2.69 (3.99%)
SSGC 13.18 Increased By ▲ 0.58 (4.6%)
TELE 8.81 Increased By ▲ 0.26 (3.04%)
TPLP 13.65 Increased By ▲ 0.35 (2.63%)
TRG 91.94 Increased By ▲ 6.25 (7.29%)
UNITY 26.81 Increased By ▲ 0.34 (1.28%)
WTL 1.57 Decreased By ▼ -0.01 (-0.63%)
BR100 6,544 Increased By 101.5 (1.58%)
BR30 23,210 Increased By 429.3 (1.88%)
KSE100 63,918 Increased By 961.7 (1.53%)
KSE30 21,352 Increased By 348.1 (1.66%)

Euro zone government bond yields ticked lower on Monday as investors await inflation data later this week while U.S. financial markets closed for holiday.

Cash U.S. Treasuries were untraded in Asia and Europe on Monday, owing to the Memorial Day holiday, while futures were steady after an agreement on the U.S. debt ceiling.

President Joe Biden on Sunday finalized a budget deal with House Speaker Kevin McCarthy to suspend the $31.4 trillion debt limit until January 1, 2025, and said the deal was ready to move to Congress for a vote.

Germany’s 2-year government bond yield, more sensitive to expectations for policy rates, was down 0.5 basis points (bps) at 2.97%.

On Friday it hit its highest level since March 15 at 2.991%, almost 30 bps below the closing on March 9, the day before the banking turmoil started affecting financial markets.

Germany will publish consumer price data on Wednesday, while euro area numbers will be released on Thursday.

“While we have the stronger conviction that the peak for (euro zone) core goods inflation is behind us, we now expect slower moderation from here,” said Ruben Segura-Cayuela, European economist at BofA, in a research note. “A strong summer season is likely to keep services inflation from clearly peaking in the next few months.”

“We incorporate an acceleration in energy prices in the second half of the year, the situation is fragile, and upside surprises can’t be ruled out,” Segura-Cayuela added, mentioning the evolution of wages and the risk of second-round effects.

Euro zone yields set for biggest weekly rise since Dec

BofA expects headline inflation at 5.3% this year and 2.4% in 2024, with core inflation at 4.8% and 2.5%.

Irish central bank chief Gabriel Makhlouf said on Friday that more than two ECB rate hikes this year remain open to debate as inflation is still stubborn.

Money markets have been pricing more than two rate hikes since early last week while postponing the peak in policy rates from September to December.

December 2023 ECB euro short-term rate forwards were at 3.75%, implying expectations for a deposit facility rate of 3.85% by year-end.

Germany’s 10-year government bond yields, the bloc’s benchmark, fell one bp to 2.53%.

Greece’s 10-year yields dropped 2 bps to 3.92%, with the gap between Greek and German yields hitting its lowest since October 2021 at 128.7 bps.

Greek bond prices jumped last week as the election outcome boosted expectations that the country will continue its policies supporting economic growth and declining debt.

Greece’s president will appoint a caretaker prime minister on Wednesday to form a government leading the country to a repeat election on June 25.

Markets believe a second vote, which gives the leading party bonus seats, will give the conservative New Democracy party the majority needed to rule alone.


Comments are closed.

Euro zone bond yields edge lower ahead of inflation data

Three projects: ADB approves $659m in financing

New FAB ED: govt initiates appointment process

FWBL sell-off: Minister briefed about status of accounts

Digitising budget process: Shamshad chairs IMF mission meeting

‘Illegal’ LCs, forex market speculation: MoF set to share list of banks with SIFC today

Loss-making Discos: FD opposes PD’s proposal

Power sector: Nepra backs transition from Libor to ‘SOFR’

‘Delayed’ CASA-1000 project: World Bank reluctant to arrange funds

CPEC 10th anniversary: there exists strong commitment to accelerate pace of ongoing projects

Customs values of various goods changed