LONDON, March 21 (Reuters) – Spanish government bond yields
fell on Thursday, pushed lower by a strong Spanish debt sale, as
investors kept faith with the euro zone’s large peripheral
states despite Cyprus’s struggle to avoid financial meltdown.
Demand for debt issued by large, vulnerable euro zone states
such as Spain and Italy remains buoyed by the belief that the
European Central Bank will step in with bond-buying support if
they came under pressure and the bonds look attractive because
of the high yields they offer.
LONDON, March 20 (Reuters) – German Bunds dipped on
Wednesday as some investors trimmed exposure to low-risk debt on
bets that policymakers will find an eventual solution to Cyprus’
Cyprus sought a new loan from Russia to avert a financial
meltdown after its parliament rejected on Tuesday plans to
partially fund a European Union bailout for the indebted island
with a deposit levy.
LONDON, March 20 (Reuters) – Fresh uncertainty over Cyprus’s
future in the euro zone kept German Bund yields near their
lowest levels of the year on Wednesday after the country’s
parliament rejected a bailout plan that involved a bank levy.
While German Bund futures, sought as a safe haven
in times of market stress, were 20 ticks lower on the day at
144.42, they remained at elevated levels and few expected prices
to fall much further in the near term.
LONDON, March 19 (Reuters) – Money market stress gauges
started to rise on Tuesday as the impact of plans to partially
fund a bailout for Cyprus by taxing savers raised the risk of a
more widespread crisis in the euro zone system.
Although the tension was rising, the full-blown panic seen
at previous crisis flashpoints remains some way off thanks to
steps taken by the European Central Bank to shore up the
region’s banks and foster confidence in sovereign bond markets.
LONDON, March 18 (Reuters) – Spanish and Italian bond yields
rose on Monday after Cyprus caught investors off guard with a
bailout deal partially funded by a tax on banks’ savers that
some feared could set a euro zone precedent.
The value of Cypriot bonds fell sharply while increased
demand for German debt, seen as least risky in the euro zone,
pushed 10-year Bund yields to their lowest levels this year.
LONDON, March 8 (Reuters) – Spanish bond yields sank to
their lowest level in over a year as investors piled money into
riskier bonds in search of higher yields and spurred on by
better than expected U.S. jobs data.
Spain was the top performer among euro zone bonds, rallying
faster than Italian debt and drawing demand from less risky
assets like German bonds, where yields rose on the day.
LONDON, March 7 (Reuters) – Interbank borrowing rates inched
higher on Thursday as traders who had positioned for the
European Central Bank to signal fresh monetary easing found
little support from the bank’s monthly news conference.
Money market rates rose slightly as those who had wagered
that Italy’s electoral crisis and worsening economic data could
push the central bank to signal rate cuts in the near future,
looked to close out their positions.
LONDON, March 6 (Reuters) – Italian government bond yields
fell on Wednesday as investors put their faith in the European
Central Bank’s ability to prevent indecisive elections driving
Italy into full-blown crisis.
Investors bought back Rome’s bonds for a second consecutive
session despite expectations that attempts to form a coalition
will fail, and with the country’s president considering
appointing a technocrat government.
LONDON, March 5 (Reuters) – Italian bond yields fell on
Tuesday despite Rome’s political crisis, benefiting from a
better appetite for high-yielding debt and repeating the recent
pattern of buyers re-emerging each time prices fall.
Italy’s 10-year bond yield fell 13 basis
points to 4.75 percent but political uncertainty over how the
country will be governed after deadlocked elections last week
means borrowing costs are still 30 bps higher versus
LONDON, March 1 (Reuters) – Money market traders are pricing
in low short-term rates for the foreseeable future as some banks
look set to hang on to large cash buffers and Italy’s political
crisis emerges as a possible trigger for official rate cuts.
The money market rate curve, which predicts the path of
overnight interbank borrowing costs over the coming months and
years, is at its flattest since early January and short-term
rates are now seen steady for at least the next 12 months.