Bonds’ positive ‘reaction’ after Lagarde’s assurance of ‘gradual’ moves

Bond prices are recovering slightly today after the big decline recorded yesterday.

ECB chief Christine Lagarde’s speech to the European Parliament yesterday, in which she assured that the next moves would be “gradual” and “linked to the course of financial data” seems to have convinced investors in part.

In any case, the ECB’s intention to pursue a more restrictive monetary policy is no longer questioned by either the Central Bankers or large institutional investors such as JP Morgan and Deutsche Bank, who are now distancing themselves from Greek bonds. . On the contrary, Goldman Sachs is more reassuring, estimating that the negative effects of rising borrowing costs could be partially offset by higher growth rates.

In the domestic market and more specifically in HDAT, transactions amounting to 18 million euros were recorded today, of which 8 were related to purchase orders. The yield on the 10-year bond closed at 2.49% – however, early in the afternoon it had fallen to 2.30%, from 2.41% yesterday against 0.26% of the corresponding German bond, resulting in a margin of 1.23% from 1.18%.

In the foreign exchange market, the euro is falling slightly against the dollar as the European currency traded at $ 1.1412 5 from the level of 1.1423 dollars that the market opened.

The indicative price for the euro / dollar exchange rate announced by the ECB was 1.1408 dollars.

SOURCE: ΑΠΕ-ΜΠΕ