LONDON (Reuters) – Portuguese government bonds outpaced their euro zone peers on Friday, with investors optimistic the three main political parties will reach a deal over the weekend to keep the country’s bailout program on track.
Safe-haven German Bunds, meanwhile, briefly hit session lows after China’s central bank announced long-awaited interest rate reforms in a move analysts expect will boost growth in the world’s second-largest economy.
LONDON (Reuters) – Euro zone bonds stabilized on Friday after gaining this week on the back of healthy auctions and reassuring testimony from the head of the U.S. Federal Reserve.
They were expected to remain steady, without any major data to provide direction.
LONDON (Reuters) – Euro zone bonds eased on Wednesday after minutes from the Bank of England showed no support from policymakers for more bond purchases, unnerving investors before the head of the Federal Reserve testifies to Congress.
The BoE minutes showed all ratesetters voted against further asset purchases at this month’s meeting, serving markets with a reminder that global central bank stimulus programs will eventually end.
LONDON, July 17 (Reuters) – Euro zone government bonds were
steady on Wednesday as investors refrained from placing big bets
before testimony to Congress by Federal Reserve Chairman Ben
Concerns over when the U.S. central bank may start
withdrawing monetary stimulus has unnerved financial markets in
recent months. They will be looking to the Fed chief for any
indication of when the tapering may start.
LONDON, July 15 (Reuters) – French government bonds held
steady on Monday after the country lost its last major triple-A
rating last week, suggesting investors have come to terms with a
shrinking universe of top-rated debt.
Fitch downgraded the euro zone’s second-largest economy to
AA+ on Friday, citing weaker economic output, rising
unemployment, budget deficits and subdued external demand. It
kept the outlook stable, meaning no further downgrade was
expected in the next two years.
LONDON, July 12 (Reuters) – Portuguese yields climbed on
Friday after Lisbon delayed its creditors’ next review of the
country’s bailout due to a political crisis, but other euro zone
borrowing costs fell.
Portuguese debt lagged that issued by bailed-out peer
Ireland, whose yields fell after Standard & Poor’s upgraded the
country’s ratings outlook, highlighting their diverging fortunes
and accentuating investor differentiation between their bonds.
LONDON, July 8 (Reuters) – Greek government bond yields fell
sharply on Monday, with Athens expected to secure its next
bailout aid tranche.
Greek debt outperformed other lower-rated euro zone bonds,
whose yields also fell after the European Central Bank’s pledge
last week to keep interest rates low or even cut them.
LONDON, July 5 (Reuters) – A contained fall in euro
bank-to-bank lending rates after the European Central Bank
promised to keep rates low suggests it may be able to offset
only in part the effects of a likely withdrawal of U.S. monetary
Data on Friday showed U.S. jobs growth was stronger than
expected in June, increasing chances the Federal Reserve will
start to scale back its money-printing this year. That prompted
Euribor futures to fall across the 2015 strip.
LONDON, July 4 (Reuters) – An early rebound in Portuguese
bonds, driven by government attempts to defuse its political
crisis, was short-lived on Thursday as investors fretted over
the country’s ability to end its international bail out.
Two-year Portuguese yields jumped 41 basis
points to 5.9 percent as investors sold and five-year yields
rose to the psychologically important 7 percent level. Ten-year
yields rose 6 basis points to 7.59 percent.
LONDON, July 4 (Reuters) – Portuguese yields fell but held
above 7 percent on Thursday as the government sought to defuse a
political crisis and investors refrained from placing big bets
before a Spanish auction and a European Central Bank meeting.
Portugal’s crisis, triggered by the resignation of two
ministers this week, saw its 10-year government bond yields
spike on Wednesday above 8 percent and raised concerns the
country would struggles to exit as planned its 78-billion-euro
bailout programme. Other lower-rated euro zone yields also rose
but less sharply.