Bonds are on the rise, but not the euro, after the ECB’s decisions

Yesterday’s decisions of the European Central Bank were positively received by the eurozone bond markets today.

Despite the uncertainties that still exist regarding the operation of the New Market Protection Mechanism, the prices of most bonds moved upwards – with the exception of Italian ones – as a result of which yields recorded a small retreat.

In contrast, the euro showed no signs of a strong recovery despite a brave 0.5% interest rate hike. Of course, the ECB’s decision halted the great fall of the euro, but most analysts predict that 1-1 parity with the dollar is a matter of time. Analysts estimate that the Fed’s moves will ultimately outweigh the specific decisions of the ECB, decisions which, as they estimate, can hardly affect the real problem of the Eurozone at this stage, which is its energy sufficiency.

In the Electronic Transaction System of the Bank of Greece (HDAT) intense trading activity was observed as transactions of 263 million euros were recorded, of which 158 million euros related to purchase orders.

The benchmark 10-year bond yield stood at 3.29% versus 1.04% for the German counterpart, resulting in a margin of 2.25%.

In the foreign exchange market, the euro is gaining slightly, as it was trading at $1.0255 in the early afternoon from $1.0288 when the market opened.

The indicative price for the euro/dollar exchange rate announced by the European Central Bank was set at $1.0190