ROME Economic recovery prospects in the euro zone remain uncertain and the European Central Bank will counter any strong rises in interest rates that are not…
European stocks slipped from record highs on Monday in subdued trading due to holidays in major markets, but optimism over a swift economic recovery helped the STOXX 600 index mark its fourth straight month of gains.
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)
Rising bond yields test the ECB’s nerves before deciding to reduce
Eurozone governments ’borrowing costs are rising again, testing the nerves of European Central Bank policy makers to decide whether to slow down asset purchases from next month.
If the ECB reduces its final appeal for net purchases of more than 80 billion euros a month to the next governing council on June 10, it will join other central banks that have already done so in response to a better one. economic perspective, including in Canada and the United Kingdom.
If they are U.S. Federal Reserve officials discuss whether at the meeting in late April he would start talking about reducing his bond purchases.