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Eurozone Bond Yields Up on Easing Back Virus Hopes

Eurozone bond yields inched up on Wednesday as the spread of the coronavirus that has frightened world markets gave indications of easing back.

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China on Wednesday announced its slowest number of new coronavirus cases since late January, loaning weight to a forecast from its senior medical adviser that the flare-up could be over by April and boosting risk-on resources, for example, shares globally.

Most 10-year bond yields in the eurozone were up 3 bps in early exchange, with Germany's benchmark ascending to minus 0.36 percent, its strongest since last Thursday.

The 10-year Bund yield has risen somewhere in the range of 8 bps since a week ago on any desires for an easing back of the spread of the infection, however, it is still down about 20 basis points this year as fears of the effect the infection will have on worldwide financial development has supported risk-off resources.

Eurozone industrial generation numbers are expected at 1000 GMT, following frustrating information from Germany a week ago, which indicated its greatest drop since 2009 in December.

In primary supply, Germany is booked to sell 4 billion euros of 10-year bunds, while Portugal will sell up to 1.25 billion euros of bonds due 2026 and 2034.

Somewhere else, Germany's new appointee to the ECB's board, Isabel Schnabel, guarded the bank's easy fiscal strategy late on Tuesday, saying the eurozone would have been worse off without it and it was dependent upon others to counter the reactions.

Source: Reuters

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