LONDON, April 17 (Reuters) – A forecast surge of Japanese
cash into euro zone government bonds may be months away but will
drive down already depressed borrowing costs across the bloc,
say asset managers positioning for its arrival.
Anticipation of the inflows is already pushing yields on
highly-rated euro zone bonds to record lows and increasing
demand for lower-rated Italy and Spain, giving the recession-hit
region some respite from a three-year-old debt crisis.
LONDON, April 15 (Reuters) – Government bonds across the
euro zone held broadly steady on Monday as low yields tempered
enthusiasm to keep buying, leaving the near-term outlook
dependent on upcoming economic data.
With yields near record lows on highly-rated debt from the
Netherlands and France, and German bond yields close to the
“crisis level” troughs seen last year when a euro zone break up
was considered a realistic possibility, the rally initiated just
over a week ago stalled.
LONDON, April 12 (Reuters) – Demand for less risky assets
helped German Bunds rally on Friday as bail-out candidate
Cyprus’s plight unnerved investors and economic data showed the
outlook for the U.S. economy darkening.
Although finance ministers backed a 10 billion euro bailout
package for Cyprus, yields fell on highly-rated euro zone bonds
issued by the likes of Germany, the Netherlands and France as
investors backed away from riskier assets.
LONDON, April 10 (Reuters) – A broad sell-off among
highly-rated euro zone bonds extended into a second day on
Wednesday, lifting their yields from recent lows as investor
demand focused on a wave of newly-issued debt.
French, Dutch, Belgian and Austrian bond prices were seen
slipping further in the near term, with investors looking for
evidence of a switch out of low-yielding Japanese bonds into the
currency bloc after Japan’s huge $1.4 trillion stimulus plans
last week spurred demand for overseas debt.
LONDON, April 10 (Reuters) – Yields on highly-rated euro
zone bonds lifted further from recent lows on Wednesday, with
prices seen slipping in the near term, as investor demand
focused on a wave of newly-issued debt.
A broad sell-off across the euro zone’s more secure
countries extended into a second day as the surge in demand that
followed Japan’s announcement of huge monetary stimulus paused,
and the flow of new debt into the market gathered pace.
LONDON, April 10 (Reuters) – Highly-rated euro zone bond
yields eased away from recent lows as a wave of newly-issued
bonds absorbed much of investor demand, with prices seen
slipping further in the short term.
A broad selloff across the euro zone’s more secure core
countries continued as the surge in demand that followed Japan’s
announcement of huge monetary stimulus plans paused, and the
supply of new debt into the market gathered pace.
LONDON, April 9 (Reuters) – A wave of newly-issued euro zone
bonds offset a surge in investor demand for non-German bonds and
halted a record-breaking rally fuelled by Japan’s radical
efforts to stimulate growth.
Japan’s central bank unveiled a $1.4 trillion stimulus plan
last week, prompting speculation that cash will spill over into
other regions in search of higher bond yields and assets not
denominated in the rapidly depreciating Japanese yen.
LONDON, April 5 (Reuters) – Investors cash fleeing Japan’s
massive stimulus plans in search of higher returns lifted yields
on Friday to record levels on government bonds across the euro
The Bank of Japan launched the world’s most aggressive
monetary stimulus on Thursday, pledging to inject about $1.4
trillion into the economy in less than two years by buying
government bonds and exchange-traded funds.
LONDON, April 4 (Reuters) – German bond yields touched an
eight-month low on Thursday after the European Central Bank was
judged to be edging towards a rate cut as the euro zone’s
economic outlook grows gloomier.
After the euro zone central bank’s monthly meeting, ECB
President Mario Draghi said he expects economic recovery to kick
in later this year but that the bank will monitor incoming data
very closely and stands ready to cut rates if necessary.
LONDON, April 3 (Reuters) – Expectations that the European
Central Bank could signal an imminent interest rate cut on
Thursday has left short-term interest rate futures primed for a
selloff if the bank’s rhetoric falls short.
A run of data confirming the euro zone remains stuck in
recession, combined with unease after an unprecedented levy on
bank deposits in Cyprus has led some to bet on the central bank
signalling more monetary easing is in the pipeline.