Eurozone bond yields fall

AFP, PARIS: Investors snapped up eurozone bonds yesterday, anticipating the European Central Bank may step more heavily into the market after the US decision to keep interest rates on hold. Around 0930 GMT the rate of return to investors in secondary trading of benchmark 10-year German government bonds fell to 0.686 per cent from 0.781 on Thursday evening before the US Federal Reserve held its key interest rate locked at zero citing worries about how the slowdown in China will hit the US economy. The yield on similar French bonds fell to 1.058 per cent from 1.164 per cent, while Spanish bonds slid to 2.017 per cent from 2.092 per cent and Italian debt dropped to 1.1810 per cent from 1.904 per cent.
The fall in German bond yields was the biggest since early July, while Italian and Spanish bond yields sank to their lowest since late August, Bloomberg News reported. The US rate decision followed a pledge earlier this month by the European Central Bank to scale up its contentious QE stimulus programme of bond purchases if the eurozone recovery stalls.

Eurozone bond yields fall

AFP, PARIS: Investors snapped up eurozone bonds yesterday, anticipating the European Central Bank may step more heavily into the market after the US decision to keep interest rates on hold. Around 0930 GMT the rate of return to investors in secondary trading of benchmark 10-year German government bonds fell to 0.686 per cent from 0.781 on Thursday evening before the US Federal Reserve held its key interest rate locked at zero citing worries about how the slowdown in China will hit the US economy. The yield on similar French bonds fell to 1.058 per cent from 1.164 per cent, while Spanish bonds slid to 2.017 per cent from 2.092 per cent and Italian debt dropped to 1.1810 per cent from 1.904 per cent. The fall in German bond yields was the biggest since early July, while Italian and Spanish bond yields sank to their lowest since late August, Bloomberg News reported. The US rate decision followed a pledge earlier this month by the European Central Bank to scale up its contentious QE stimulus programme of bond purchases if the eurozone recovery stalls.