Bond yields are rising

The situation in the bond market is normalized with the yields returning to a downward trajectory, as the “risk” of rising interest rates is eliminated.

Investors have accepted that the European Central Bank does not intend, under the threat of inflation, to change its monetary policy in a more restrictive direction. Today, the Governor of the Bank of Greece, G. Stournaras, assured that the monetary policy of the ECB will not change. “Under the current circumstances, as I have already mentioned, we estimate that the current rise in inflation will be largely temporary and we expect that the current inflationary pressures will gradually subside in the coming years. (Especially in the euro area, after a temporary acceleration of “Inflation is expected to slow in 2022 and 2023. Therefore, the easing of the ECB’s monetary policy remains appropriate,” he said.

In the domestic secondary market, the yield on the 10-year bond fell further to 1.071% from 1.18% yesterday. The yield on the 5-year bond decreased to 0.30% from 0.42% and on the 15-year bond to 1.14% from 1.21%.

In the Electronic Transaction System of the Bank of Greece (HDAT) transactions of 59 million euros were recorded, of which 47 million euros related to purchase orders. The yield on the 10-year benchmark bond stood at 1.13% from 1.17% against -0.28% of the corresponding German bond, resulting in a margin of 1.41%.

In the foreign exchange market, the European currency is recovering slightly, as a result of which it traded early in the afternoon at $ 1.1563 from the $ 1.1552 that the market opened.

The indicative price for the euro / dollar exchange rate announced by the European Central Bank was $ 1.1519.

SOURCE: ΑΠΕ-ΜΠΕ