Economic news

Eurozone Bond Yields Grow, Fed's Powell in The Limelight

Government bond yields over the euro region gained on Tuesday because of additions by world stock exchanges, yet didn't venture excessively a long way from ongoing lows in an indication of hidden alert among traders.

ecbPhoto: Flickr

Experts said worries that coronavirus will hurt the world economy, followed by a political vulnerability in Germany, kept on supporting bond markets.

Yet, for now, further declines in bond yields, and value rises, were troublesome even with revitalizing equity markets. Asian stock markets followed Wall Street up on Tuesday, while European shares opened extensively higher.

In an early exchange, most 10-year bond yields were 1 to 2 bps higher during the day.

Germany's benchmark Bund yield was up 1.6 basis points at minus 0.398 percent, not far off a low of minus 0.41 percent reached on Monday.

It is down around 20 basis points so far this year on worry that the coronavirus episode will hurt financial development and support the ECB to keep up easy money related strategy position.

ECB President Christine Lagarde is booked to talk later this session, while U.S. Fed Chairman Jerome Powell will convey a semi-yearly testimony to Congress.

The content of Powell's testimony was distributed on Friday, so the key was relied upon to fall around the question-and-answer session.

Somewhere else, Italy was required to issue another 15-year bond employing a syndicate of banks.

Source: Reuters

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