![]() ![]() The country is believed to be considering a bond issuance next week, a deal that would represent its first foray in debt markets since 2014. Greece’s 10-year government bond yields themselves were a touch higher on the day as a potential bond market return approaches, but at 5.33 percent are well off this year’s highs of over 8 percent. Meanwhile, the International Monetary Fund on Thursday approved in principle a 1.8 billion dollar standby loan arrangement for Greece, making a conditional commitment to help underpin the country’s long-running bailout programme for the first time in two years. ![]() This should be positive for “peripheral” government bonds, they said in a note. Not only did a recent rise in yields have that impact, but also the surge in the euro also has a quasi-tightening impact by making life harder for the euro zone exporters.Ĭommerzbank analysts believe that the meeting confirms that the ECB chief does not want to hasten its exit from extraordinary stimulus. “Draghi said that the ECB does not want to cause an unwanted tightening of monetary conditions which could harm the recovery,” said BBVA strategist Jaime Costero Denche said. The euro, meanwhile, jumped to a two-year high against the dollar. The European Central Bank left its ultra-easy monetary policy unchanged on Thursday and did not discuss clawing back stimulus, though ECB chief Mario Draghi did signal that those discussions would begin in its next one or two meetings.Įuro zone bond yields dropped across the board, with Italian, Portuguese and Spanish bonds - seen as the biggest beneficiaries of the ECB’s largesse - proving particularly strong on the day.
0 Comments
Leave a Reply. |