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Apr 23, 2013

Spain leads euro zone debt rally on ECB rate outlook

LONDON, April 23 (Reuters) – Spanish and Italian bonds led a
rally on a slew of euro zone debt on Tuesday as a slowdown in
German business activity reinforced the case for an interest
rate cut by the European Central Bank.

Germany’s private sector shrank for the first time in five
months in April, according to a survey, fuelling concerns the
euro zone crisis was taking a toll on its largest economy.

Apr 23, 2013

Euro zone debt rallies as PMI fuels rate cut bets

LONDON, April 23 (Reuters) – Euro zone debt rose across the
board on Tuesday as a downbeat survey on Germany’s manufacturing
and services sector reinforced the case for an interest rate cut
by the European Central Bank.

Germany’s private sector shrank for the first time in five
months in April, according to a survey, fuelling concerns the
euro zone crisis was taking a toll on its largest economy.

Apr 23, 2013

Bunds hit contract high after German PMI

LONDON, April 23 (Reuters) – Bund futures hit a contract
high on Tuesday after a downbeat survey on Germany’s
manufacturing and services sector reinforced the case for an
interest rate cut.

Germany’s private sector shrank for the first time in five
months in April, a survey showed, suggesting Europe’s largest
economy may contract again after an expected recovery in the
first quarter.

Apr 16, 2013

Bumper retail bond sale lifts Italy debt

LONDON, April 16 (Reuters) – Italian debt yields fell on
Tuesday after a sale of retail bonds met solid demand though the
move was tempered by an upward revision in the country’s 2013
funding needs.

Orders for the four-year Italian inflation-linked bonds
totalled 17.05 billion euros – officials had
expected a take-up of below 10 billion – as the Treasury closed
the sale two days ahead of schedule.

Apr 16, 2013

Italian debt rises as markets easily absorb retail bond

LONDON, April 16 (Reuters) – Italian debt yields fell on
Tuesday as a sale of Italian retail bonds was well received by
markets, while German bond yields rose as investors took profits
after the recent bond rally.

Orders for Italy’s 2017 BTP Italia reached
a total of 10 billion euros at the beginning of the second and
last day of sale, data from the Italian Bourse showed on
Tuesday.

Apr 16, 2013

German bonds range-bound as investors brace for data

LONDON, April 16 (Reuters) – Bund futures crept lower on
Tuesday with investors cautious before the release of data which
could provide clues on the European Central Bank’s next policy
move.

German debt could resume a recent rally if euro zone
inflation data and Germany’s ZEW economic sentiment indicator
due later this session support the case for a rate cut later
this year.

Apr 15, 2013
via MacroScope

Why euro zone bond yield ‘convergence’ may be something to fear

 

Are European bond investors looking for love in all the wrong places?

The premium bankers demand to hold various types of euro zone debt over that of Germany has recently come down. In normal circumstances, this might suggest markets are no longer discriminating between the risks associated with different member countries’ bonds. But analysts say the recent convergence is based on a precarious belief of ECB action rather than any real improvement in economic fundamentals.

Spain and Italy still offer a comfortable premium over Germany. But a narrowing in yield spreads that is being driven by a fall in the funding costs of Spain and Italy, rather than by a rise in German yields, gives reason for pause.

Apr 12, 2013

ECB pledge to save euro sets floor for German yields

LONDON, April 12 (Reuters) – German bond yields, close to
their lowest since the European Central Bank pledged to save the
euro, may not fall much further as long as investors keep faith
with the “whatever it takes” promise.

German borrowing costs hit their lowest last week since ECB
President Mario Draghi vowed to protect the euro in July, but
analysts say this time the doomsday scenario of a euro break-up
is not the main driver and this should set a floor for yields.

Apr 11, 2013

Italian, Spanish debt succumb to slight profit-taking

LONDON, April 11 (Reuters) – Italian and Spanish government
bond yields crept higher on Thursday as investors took some
profit on recent gains in lower-rated debt which has been driven
by demand for yield in an easy monetary policy environment.

Expectations for a European Central Bank rate cut and the
Bank of Japan’s plans to print unprecedented amounts of money to
stimulate the economy have pushed investors to take on more risk
in recent days in search of higher returns.

Apr 9, 2013

U.S. bonds little changed, supply could weigh

LONDON, April 9 (Reuters) – U.S. Treasuries were little
changed at high levels on Tuesday but could face some near-term
selling pressure as the market absorbs a bout of supply this
week.

The U.S. Treasury Department will sell $32 billion in
three-year debt on Tuesday, $21 billion in 10-year notes on
Wednesday and $13 billion in 30-year bonds on Thursday.

    • About Ana

      "Ana Nicolaci da Costa is UK Economics Correspondent, covering monetary and fiscal policy in London. Ana previously worked as Reuters' Economics Correspondent in Brasilia and covered European markets, including the euro zone debt crisis. She began working for Reuters in 2004 in London, after an internship at the Financial Times. Ana has a Master's degree from the University of London and studied political science as an undergraduate at the University of Nottingham and Institut d'Etudes Politiques de Paris."
      Joined Reuters:
      2004
      Languages:
      English, Portuguese, French, German, Spanish
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