VIAC

ViacomCBS Inc.

29.58
USD
-17.81%
29.58
USD
-17.81%
27.84 101.97
52 weeks
52 weeks

Mkt Cap 17.95B

Shares Out 606.71M

Send me real-time posts from this site at my email

Euro zone government bond yields fall ahead of U.S. price data

May 27 (Reuters) - Euro government bond yields fell on Friday after a less hawkish stance from the European Central Bank soothed fears of aggressive monetary tightening. Recent comments from ECB officials tend to rule out a 50 basis points (bps) rate hike in July, while minutes from the Fed meeting indicated the central bank might pause rate hikes later in the year. Germany's 10-year government bond yield fell 1.5 bps to 0.976%. DE10YT=RR "At the moment, we have a neutral stance on Bunds. We see German bond yields flat to lower rather than meaningfully higher," said David Riley, chief investment strategist at BlueBay Asset Management. "Much will depend on how inflation data comes out. We have two releases of consumer price numbers before the ECB policy meeting in July," he added. Janus Henderson said the 10-year Bund yield was expected to be data-dependent between 0.8% and 1.2% by year-end. Allianz Global Investors argued it would stay at around 1% before the ECB policy meeting on June 9. Investors are awaiting U.S. personal consumption expenditure price index (PCE) -- the Fed's preferred inflation gauge – later on Friday. "A softer outcome from the U.S. core PCE today, as our economists are expecting, amid signs that the year-on-year price pressure is levelling off further could keep the bullish steepening in USTs intact ahead of the long U.S. weekend," Commerzbank analysts said in a note to clients. "Similar dynamics are also driving European government bonds," they added. Italy's 10-year government bond yield fell 2 bps to 2.888%. IT10YT=RR The spread between Italian and German 10-year yields was at 191 bps after falling by 10 bps to around 190 on Thursday, in its biggest tightening since March 2022. DE10IT10=RR Spreads between Portuguese and Greek 10-year bond yields against their German counterparts tightened further by around 3 bps. DE10PT10=, DE10GR10= The German-Spanish spread widened 3 bps to 105. DE10ES10= Spanish bond prices are being weighed upon by strong inflation which is running at its fastest pace in three decades. Analysts expect inflation data from the euro zone on Tuesday to put the recent spread tightening between core and peripheral yields to a test after they took comfort from "gradualism" advocated by the ECB president Christine Lagarde recently. Fitch will release its latest view on Italy's ratings late on Friday. Analysts said Fitch is the most sensitive of the three leading agencies to debt ratios and is likely to be vigilant to rising interest costs on sovereign debt amid increasing yields. However, they expect the rating agency to wait for ratings or outlook changes amid uncertainty about the ECB policy stance and the likely rising political risk into year-end due to parliamentary elections in the first half of 2023. (Reporting by Stefano Rebaudo, editing by Kim Coghill) ((stefano.rebaudo@thomsonreuters.com; +390266129431;)) The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue