Investor interest in Eurozone bonds appears subdued today after the release of positive data regarding the course of GDP in the second quarter. GDP growth came in at 0.7% (compared to the previous quarter) and 4% on an annual basis, far exceeding analysts’ forecasts. It is recalled that in the first quarter of 2022, GDP had grown by 0.5% in the eurozone, while compared to the corresponding quarter of 2021, GDP increased by 4%.
Bond prices moved stabilizing today, as most analysts discount that economic activity is likely to decline in the second half of the year. The Kremlin’s energy threats, prolonged supply and rising consumer prices are reducing demand and production. In addition, developments on the inflation front cause serious concern as in July it shot up to 8.9% (from 8.6% the previous month), thus creating increased pressure on the ECB for another “brave” increase in interest rates in September.
In HDAT, transactions of 137 million euros were recorded, of which 63 million euros related to purchase orders. The yield on the 10-year bond stood at 3.05%, up from 3.01% yesterday, versus 0.88% for the German counterpart, bringing the spread to 2.17%, up from 2.18% at yesterday’s close.
In the foreign exchange market, the euro is moving down today, as a result of which it is trading in the early afternoon at 1.0154 dollars from the level of 1.0156 dollars that opened the market.
The indicative price for the euro/dollar exchange rate announced by the ECB was 1.0122 dollars.
Source: Capital
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
