Italy sees low demand for 10-year auction U.S. underlying inflation has little market impact Euro zone periphery govt bond yields tmsnrt.rs/2ii2Bqr (Recasts, adds details, updates prices)
LONDON, May 28 (Reuters) - The gap between Italian and German bond yields was at its narrowest in a fortnight on Friday as dovish messaging from the European Central Bank continued to support Italian debt.
After a prolonged selloff of Italian debt recently, Rome’s borrowing costs were set to drop for the second week running.
Italian bonds have been a key winner of dovish ECB commentary since last week, led by President Christine Lagarde, who said it was too early for the central bank to discuss slowing its pandemic emergency bond purchases (PEPP)
Bank of England Chief Economist Andy Haldane has warned there is a chance that cost pressures faced by British companies lead to high prices that become embedded in pay demands, in an echo of inflationary wage-price spirals of previous decades.
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ISTANBUL (Reuters) -Turkey’s lira tumbled to a record low of 8.6 versus the dollar on Friday as it took a hit from global inflation concerns, expectations that the central bank will soon cut interest rates and worries over possible early elections.
FILE PHOTO: Turkish lira banknotes are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration
The lira - by far the weakest performer in emerging markets this year - slipped beyond its November intraday low of 8.58, marking the latest step in a years-long depreciation that has dogged the Middle East’s top economy.
It recouped some losses and was at 8.575 against the U.S. currency at 10:52 GMT, ahead of a review by S&P Global that could downgrade its Turkey credit rating. It also logged a new nadir of 10.4696 against the euro.
(Updates with Fitch rating)
ISLAMABAD, May 28 (Reuters) - Pakistan’s government has set a 4.8% GDP growth target for the financial year starting on July 1 as the country recovers from the worst of the coronavirus pandemic, Planning Minister Asad Umar said on Friday.
For the year ending next month, Pakistan has said it is on course to achieve 3.94% GDP - more than double the IMF’s view and roughly triple the World Bank’s projection.
“This growth is an indicator that the revival that has started is continuing its momentum,” Umar told a news conference in Islamabad.
The government has met with scepticism over its forecast for the current financial year, which it has raised from a previous 3% and an original target of 2.1% set in the last budget.