Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Euro zone govt yields edge higher as week begins on bright note

08/02/2021 | 03:52am EDT

* Euro zone yields edge higher after July tumble

* Analysts say watch U.S. rates market for direction

* Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr

LONDON, Aug 2 (Reuters) - Euro zone government bond yields rose in early trading on Monday as optimism about more fiscal stimulus in the United States and improving sentiment in beaten-down Asian markets encouraged investors into riskier assets.

The rise was measured, however, and follows the month of July in which government bonds globally enjoyed their biggest monthly rally since at least March 2020, driven by risks from the COVID-19 Delta variant and central bank assurances that a paring back of monetary support was still far off.

Germany's 10-year government bond yield fell 25 basis points in July, the biggest monthly drop since January 2020, while inflation-linked yields were down by their most in nine years.

Despite the ongoing worries that have driven investors into safer government debt in recent weeks, the broader investment mood was bullish on Monday, with stocks back at record highs and Chinese shares showing a strong rebound after falling heavily last week.

There was the prospect of more fiscal stimulus ahead as U.S. senators worked to finalise a sweeping $1 trillion infrastructure plan that could pass this week.

There were similar small gains across core euro zone bond markets as well as peripheral bonds , although Italian bond yields were unchanged on the day .

Data this week includes the final purchasing managers' index survey for manufacturing in July due at 0800 GMT on Monday, with the composite and services surveys to follow on Wednesday, although analysts say developments in the U.S. market are likely to be of more significance for euro zone bond yields.

"It is much more likely in our view that U.S. rates will be in the driving seat this week, although long-dated supply from France and Spain could register after the aggressive curve flattening seen in the past month," ING analysts said in a note, while also noting investors' focus on a Bank of England meeting on Thursday.

Markets will also be waiting for crucial U.S. jobs data due on Friday. (Reporting by Tommy Wilkes Editing by Anil D'Silva)

© Reuters 2021
Latest news "Economy & Forex"
07:12aARGUS MEDIA : Kuwait launches new 100,000 b/d upstream facility
06:22aPRIME MINISTER OF HUNGARY : Those who have been campaigning on the premise that the university has been shuttered have not been telling the truth
06:21aGreek pm-mediterranean countries in front line of climate change
06:21aGreek PM says climate crisis is with us and cost of ignoring it 'unimaginable'
06:21aGreek pm-climate crisis is already here and we need policies affecting every aspect of economic and social life
06:21aGreek pm mitsotakis says global cost of doing nothing on climate change is 'unimaginable'
06:09aOPEC to stick to oil production deal in October, Iraq oil minister says
06:08aUAE central bank sees COVID-19 increasing money-laundering risks
06:02aMINISTRY OF EXTERNAL AFFAIRS OF REPUBLIC OF IN : External Affairs Minister's meeting with Foreign Minister of Kingdom of Saudi Arabia
05:57aBA-owner IAG not planning to tap investors for funds - Sunday Times
Latest news "Economy & Forex"