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Euro-Area Inflation Remains Steady as Economy Battles Lockdowns

(Bloomberg) Inflation in the euro area remained steady last month as coronavirus lockdowns weighed on the region’s economy.Prices increased an annual 0.9% in February, matching expectations. They jumped sharply in January on the back of a range of technical factors such as the expiration of a temporary sales-tax cut in Germany. A measure excluding volatile items such as food and energy slowed to 1.1%.While the European Central Bank will generally welcome the return of faster inflation, it’s also pledged to ignore short-term spikes this year as it continues to support the economy with a wave of liquidity. The institution will present new forecasts for prices and economic growth when it meets to set policy next week.Global government bond yields have been rising on a more positive outlook, especially in the U.S. where massive fiscal stimulus is under way. The recovery in the euro area, however, appears to be lagging behind other developed economies partly because of the s ....

European Central Bank , Technical Factors , ஐரோப்பிய மைய வங்கி , தொழில்நுட்ப காரணிகள் ,

Chaotic Treasury Selloff Fueled by $50 Billion of Unwinding

(Bloomberg) A chaotic selloff in the Treasuries market was spurred by a massive exodus from popular trades, heightened by liquidity concerns that could inflict more pain in coming days.The exodus happened at a time when traders were already worried about the imminent disappearance of a support beam for the market a regulatory exemption that has allowed banks to accumulate more U.S. bonds.Treasury futures open interest across a range of maturities sank by a huge amount Thursday: the equivalent of $50 billion of 10-year notes. It didn’t help that this coincided with the Treasury Department selling $62 billion of seven-year notes, an auction that proved to be a disaster.The month ahead could be rocky, too. Back in April, the Federal Reserve tweaked its rules to exempt Treasuries from banks’ supplementary leverage ratios allowing them to expand their balance sheets with U.S. debt. But that relief ends March 31 and what happens next is something of a mystery.“It w ....

Treasury Department , Bond Market , Basis Point , Technical Factors , கருவூலம் துறை , பத்திரம் சந்தை , அடிப்படையில் பாயஂட் , தொழில்நுட்ப காரணிகள் ,