Moneycontrol
Last Updated : Jul 21, 2017 07:14 PM IST | Source: Moneycontrol.com

Global Bond Monitor: US Treasury, German bund yields fall; Oz, S African bonds firm

European Central Bank President Mario Draghi on Thursday said that the central bank was in no rush to start tapering off its bond purchases, which resulted in a fall in US and German government bond yields.

European Central Bank President Mario Draghi on Thursday said that the central bank was in no rush to start tapering off its bond purchases, which resulted in a fall in US and German government bond yields.

The Bank of Japan, which also concluded its monetary policy meeting on Thursday, kept its outlook on interest rates unchanged and lowered its outlook on inflation.

This has led to many believing that given the poor outlook on inflation by the two major central banks, the US Federal Reserve, which is due to meet next week, will not hike interest rates immediately.

Here is a quick look at some of the top bond headlines from across the world.

US Treasury yields flat as tepid demand for TIPS auction offsets ECB's easy stance

US government debt yields were little changed on Thursday as buying tied to the European Central Bank's pledge of easy money stemming from inflation concerns faded after a poor auction of 10-year Treasury Inflation-Protected Securities (TIPS).

Spanish-German bond yield spread tightest since 2015

The gap between Spanish and German 10-year government bond yields narrowed to 94 basis points, its tightest level since March 2015, on Thursday after the European Central Bank left its ultra-easy monetary policy stance unchanged.

Eurozone gilts in demand as IMF support for Greece adds to ECB cheer

Euro zone government bonds were in demand on Friday as the cautious stance of policymakers cheered investors, while IMF support for a Greek bailout added to the general mood of goodwill towards the single currency bloc.

UK public finances hit by rising inflation, adds to finance minister's woes

Britain's public finances deteriorated in June as rising inflation pushed up the government's debt bill, driving home the challenge for finance minister Philip Hammond who is under pressure to loosen the public purse strings.

Japanese foreign bond investment rose by 947.8 billion yen last week

Bond investment by Japanese nationals abroad rose by ¥947.8 billion in the week ended July 10. Meanwhile, foreigners purchased a net of ¥341 billion worth of stocks in the same week.

Malay co Nam Cheong set to restructure debt; delivers blow to Singapore bond market

Malaysian company Nam Cheong is set to renege on some of its borrowings, in the latest blow to Singapore’s bond market as the shipbuilding and offshore oilfield services industry struggles to rebound from a slump in oil.

China money market rates mixed as injections meet deleveraging push

China's primary money rates were mixed on Friday despite the largest weekly net injection in half a year as tax obligations kept liquidity tight and as regulators continue to encourage deleveraging.

Canadian bond market signals inflation shortfall

Canada's bond market is signalling the Bank of Canada will not reach its 2 percent inflation target anytime soon, suggesting the central bank is unlikely to pull off more than one more rate hike even as money markets see further tightening into 2018.

Australian bonds jump tracking firm US Treasuries, short covering

The Australian bonds jumped on the last trading day of the week, tracking similar movement in the US Treasuries and as investors covered previous short positions.

South African bonds stronger as market digests surprise rate cut

South African bonds were marginally stronger on Friday morning, tracking a firmer rand as the market digested an unexpected 25 basis-point rate cut.
First Published on Jul 21, 2017 07:14 pm
Loading...
Sections
Follow us on
Available On