Bond Yield Rise Ahead of ECB Decision on Thursday

September 10, 2019 Share Print 0

Global bond yields rose on Tuesday, amid growing caution over the extent to which the European Central Bank will add stimulus to boost an ailing economy this week and rising hopes that Berlin could loosen its purse strings.

Germany’s 30-year benchmark bond yield DE30YT=RR briefly broke into positive territory for the first time in more than a month, while U.S. Treasury yields US2YT=RR US10YT=RR US30YT=RR climbed to 18-day highs.

Safe-haven assets have been caught up in the fixed income sell-off, with gold XAU= slipping to a one-month trough and Japan’s yen plumbing a five-week low. But equities .MIWD00000PUS failed to make gains, as weak Chinese producer prices data dampened the mood, and U.S. stocks were seen opening lower.

The bond moves come as markets are gearing up for Thursday’s European Central Bank (ECB) meeting, which is widely expected to deliver a cut to interest rates and point to further bond-buying stimulus.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.