New decline today in European bond prices after the increase in interest rates yesterday by the Fed and today by the Bank of England. The latter raised its key interest rate by 1% although it acknowledged that there was a risk that the British economy would slip into recession.
In the eurozone, however, money markets have already “priced” an increase in interest rates of 0.8% to 1% by the end of the year. It is indicative that the chief economist of the ECB, Philip Lane, stated that the bank is preparing for a series of interest rate increases that will set its key interest rate on positive ground.
In the domestic bond market and more specifically in HDAT, transactions of 126 million euros were recorded, of which 58 million related to purchase orders. The yield on the 10-year bond stood at 3.40% from 3.41% yesterday, compared to 1.07% of the corresponding German bond, resulting in a margin of 2.33% from 2.5% yesterday.
In the foreign exchange market, the euro is slightly lower against the dollar as it was in the early afternoon at 1.0542 dollars from the level of 1.0557 dollars that opened the market.
The indicative price for the euro / dollar exchange rate. announced by the ECB reached $ 1.0568.
Source: Capital
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