Germany’s 10-year bond yield fell to a two-month low of 0.910%, down 9 basis points (bps), with other benchmark yields across the eurozone falling by similar rates. The yield fell 43 bps in July and is expected to post its biggest monthly decline since 2012 as market attention turns from high inflation to the possibility […]
Tag: bond market
Is the EU Recovery Fund at risk from the explosion of borrowing costs?
By Marcus Ashworth It is reassuring that the European Union continues to enjoy strong investor demand for the debt it sells to finance the € 800 billion Pandemic Recovery Fund (NextGenerationEU). It is less welcome to increase its funding costs by almost 10 times compared to what it paid at the height of the pandemic. […]
The bonds are receding despite the ECB’s intention to launch a new support program
Bond prices are under pressure today, despite the encouraging publication of the Financial Times, which refers to the intention of the European Central Bank to implement a new bond market program for the weakest countries. According to the report, at this week’s meeting of the Governing Council of the ECB in Amsterdam, central bankers are […]
Piraeus ‘sees’ a decline in the margin of Greek bonds
Bond markets are declining today as pessimistic forecasts by the International Monetary Fund for the slowdown in the growth of most developed economies are troubling investors. The yield on the 10-year Greek bond is marginally lower than 3%. Nevertheless, Piraeus Bank economists estimate that the markets have largely priced the fundamentals of the Greek economy […]
The margin of Greek bonds is expanding
The margin of Greek bonds against German ones is expanding as December 16th approaches, when the ECB is expected to “open its papers” regarding the bond purchase program of the PEPR pandemic. On the contrary, the yields of most eurozone government bonds moved lower today as the new phase in which the pandemic seems to […]