10 Mar 2015
Upbeat tone in the bond markets after ECB’s QE kick off – Danske Bank
FXStreet (Edinburgh) - Pernille Nielsen, Senior Analyst at Danske Bank, remarked the upbeat sentiment in the European debt markets following the start of the ECB’s QE.
Key Quotes
“Yesterday the ECB initiated its government bond purchases and excluding Greek government bonds the initial reaction was that bonds rallied across the euro area”.
“The German yield curve flattened with 10-30Y bonds declining close to 10bp bringing 30Y yields below 0.90%”.
“The downward pressure on the long end of the curve reflected speculation that the national central banks will try to avoid buying short-dated bonds with negative yields, as it should not have been agreed how to share losses from buying at negative”.
Key Quotes
“Yesterday the ECB initiated its government bond purchases and excluding Greek government bonds the initial reaction was that bonds rallied across the euro area”.
“The German yield curve flattened with 10-30Y bonds declining close to 10bp bringing 30Y yields below 0.90%”.
“The downward pressure on the long end of the curve reflected speculation that the national central banks will try to avoid buying short-dated bonds with negative yields, as it should not have been agreed how to share losses from buying at negative”.