German government bond yield falls, Fed in the background



* Euro zone periphery government bond yields Link

By Stefano Rebaudo

MILAN, June 18 (Reuters) - German government bond yields recovered some losses while peripheral borrowing costs jumped on Friday, tracking an upward move in U.S. Treasuries after comments about U.S. inflation by a Federal Reserve official.

"It's natural that we've tilted a little bit more hawkish here to contain inflationary pressures," St. Louis Federal Reserve bank President James Bullard said on CNBC, after mentioning more intense than expected inflation.

Bullard is one of seven Fed officials who forecast a rate increase in late 2022. Thirteen out of 18 policymakers foresaw a "liftoff" in borrowing costs in 2023 at the Fed policy meeting on Wednesday.

U.S. 10-year government bond yields US10YT=RR recovered some earlier losses and were down 1 basis point at 1.5%.

"Fed’s Bullard made clear the debate about a Fed tapering will continue, while he sees a first rate increase in late 2022, triggering a new selloff in government bonds," Andrea Ponti, co-head fixed income portfolio management at Kairos Partners, said.

"Italian bond prices, which are credit-sensitive, are underperforming," he added.

Germany's 10-year government bond yield DE10YT=RR , the bloc's benchmark, was down 1 basis points at -0.20%.

The first bond backing the EU's COVID-19 recovery fund XS235637006= issued on Wednesday continued to outperform the same maturity Bund, with yields falling 5 bps to 0.043%.

Unicredit analysts said that "after a turbulent week, we expect the next several days to see a modest increase in U.S. real rates, to which euro zone government bond yields should remain rather immune."

Periphery bond prices continued to underperform core bonds as they have benefited most from the ultra-accommodative monetary policy to avoid the pandemic's adverse economic impact.

Italy's 10-year government bond yield IT10YT=RR was up 4.5 bps at 0.872%. Portugal 10-year yields PT10YT=RR rose 2 basis points to 0.433%.

Semi-core bonds, such as France’s OAT FR10YT=RR , were flat at 0.16%.

On the U.S. front, the "capitulation of 10y TIPS break-evens to the lowest level since end-March amid steady real yields is leaving inflation expectations as (Fed chair Jerome) Powell's major victim," Commerzbank analysts said.

They seem "misguided in the current situation", they added.

According to Deutsche Bank economist George Saravelos, this notable drop in U.S. inflation expectations coupled with a fall in nominal yields "is telling us that the market is taking an extremely pessimistic view on real neutral rates".

"If the Fed decides to go early, the market is saying it won't be able to go very far before inflation and growth hit a speed limit, pushing yield expectations after the initial hike lower," Saravelos said in a research note.



bond yields Link



Reporting by Stefano Rebaudo; Editing by Jan Harvey

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示: 您的資金存在風險。杠杆商品可能不適合所有客戶。 請詳細閱讀我們的風險聲明