Latest news with #Bund
Mint
17-07-2025
- Business
- Mint
European yields drift higher; focus on Trump and supply
LONDON, - Short-dated euro zone bond yields edged up on Thursday, as investors regained a sense of calm after U.S. President Donald Trump the previous day denied media reports suggesting he would fire the head of the Federal Reserve. A Bloomberg report on Wednesday saying that Trump was likely to fire Fed Chair Jerome Powell, who is due to step down next May, had sparked a drop in stocks and the dollar, and a rise in long-dated Treasury yields, in particular. Trump's denial helped reverse some of those moves, but investors were left with a sense of unease. By Thursday in Europe, two-year German Schatz yields were last up 1 basis point on the day at 1.84%, rising in line with a pickup in yields on short-dated Treasuries, which witnessed a rush of buying on Wednesday, while the long end of the curve sold off. Benchmark 10-year Bund yields, which touched their highest since late March earlier this week, were roughly unchanged on the previous close at 2.695%. Longer-dated bonds showed little response to the European Commission on Wednesday proposing a 2 trillion euro EU budget for 2028 to 2034. The Commission said its proposal amounted to 1.26% of the 27-nation bloc's gross national income - a measure of the size of the economy - compared to 1.13% for the current seven-year budget. Thirty-year German yields were trading 1 bp higher on the day at 3.24%, narrowly below Wednesday's late-2023 high of 3.26%. The curve, as reflected by the difference between two-year yields and those on 30-year German debt, has reached its steepest since early 2019 this week, as concern about long-term government finances and uncertainty around Fed independence have prompted investors have sold longer-dated paper in favour of the short end. On the supply front, Spain and France come to market on Thursday, ahead of a heavy week for issuance next week. Spain will auction 5.5 billion euros in five-, 10- and 23-year paper, while France will sell 12 billion euros in 3-, 5- and 6-year OATs, as well as another 1.5 billion euros in a range of green and inflation-linked bonds, spanning maturities from nine years to 14 years. "With an increased focus on the ongoing budget discussions, the auction results could be interesting to watch," strategists at ING said. This article was generated from an automated news agency feed without modifications to text.
Business Recorder
15-07-2025
- Business
- Business Recorder
Euro area bond yields drop before US inflation data
Euro area government bond yields edged lower on Tuesday as investors await U.S. inflation data later in the session which could provide clues about the Federal Reserve's monetary path. The U.S. figures will show how tariffs affected inflation in June after data from previous months came in cooler than economists had forecast. German 10-year yield, the euro area's benchmark, dropped one basis point (bp) to 2.71%. The 30-year yield was down one bp at 3.24%, after reaching 3.26% on Monday, its highest since October 2023. The 2-year – more sensitive to expectations for European Central Bank policy rates – was down 0.5 bps at 1.87%. The German yield curve flattened slightly, with the spread between 10-year and 2-year yields down 0.5 bps at 84 bps. It climbed 6.1 bps the day before in its biggest daily rise since April 7 after a jump in Japanese yields. Euro zone bond yields touch April high after EU gets 30% tariff The yield curve steepens when long-dated yields increase more quickly than the short-dated ones. Markets have priced in an ECB terminal rate roughly unchanged at around 1.75–1.80%, while yields on longer maturities have risen amid expectations of a significant increase in German fiscal spending. Italy's 10-year yields dropped 1.5 bps to 3.61%, with the spread between BTPs and Bund yields at 88 bps. It hit 84.20 bps earlier this month, its lowest level since March 2015.
The Standard
15-07-2025
- Business
- The Standard
In big shift, Shanghai regulator mulls policy responses to stablecoins and cryptocurrencies
People enjoy themself on the Bund near the financial district of Pudong during the sunset hour, in Shanghai, China September 27, 2024. REUTERS/Tingshu Wang
Business Recorder
14-07-2025
- Business
- Business Recorder
Euro zone bond yields touch April high after EU gets 30% tariff
LONDON: German 10-year government bond yields briefly hit their highest since early April on Monday after U.S. President Donald Trump said on Saturday he would impose a 30% tariff on most imports from the European Union from August 1. In an escalation of a trade war that has angered U.S. allies and rattled investors, Trump announced his latest tariffs in separate letters to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum that were posted on his Truth Social media site on Saturday. Benchmark Bund yields rose to as much as 2.733% in early trading, their highest since April 1, a day before Trump's original 'Liberation Day' tariff reveal. They retreated to hold steady on Friday's close at 2.726%. Thirty-year yields traded around 3.236%, up around 1 basis point on the day and within sight of their highest since mid-March. 'The latest tariff threats of 30% on EU goods are above the upper end of the recently discussed ranges, but with negotiations still progressing until the 1 August deadline, any risk-off and subsequent support for Bunds looks set to be limited at best,' Commerzbank rates strategist Hauke Siemssen said. Euro zone bond yields inch higher as traders await tariff news 'After all, Trump has repeatedly threatened substantial tariffs but extended deadlines in the subsequent days. The threats over the weekend can therefore probably be considered well in line with Trump's usual playbook,' he said. For its part, the EU has already prepared a list of tariffs worth 21 billion euros ($24.5 billion) on U.S. goods if the two countries fail to reach a trade deal, Italian Foreign Minister Antonio Tajani said in a newspaper interview on Monday. French 10-year bond yields edged up to 3.417%, while 30-year yields rose 1.5 bps to 4.216%, after President Emmanuel Macron on Sunday announced a plan to push forward defence spending, pledging to double the military budget by 2027, three years earlier than originally planned. His government is already struggling to make 40 billion euros in savings in its 2026 budget.
News.com.au
13-07-2025
- Business
- News.com.au
PM strolls Shanghai's Bund under watchful eyes of Chinese officials
Anthony Albanese has taken a walk down Shanghai's world-famous waterfront under the watchful eyes of Chinese officials, with his hosts doing their utmost to give him an unobstructed view of the towering central skyline. Onlookers gazed with unabashed curiosity as the Prime Minister and his posse strolled along the picturesque Bund with an air of confidence akin to the man who broke the bank at Monte Carlo. 'It isn't racism,' one Australian official told NewsWire. 'They just haven't seen so many white people in a big group like this before.' Among the curious crowds were people eager to extend warm welcomes and well-wishes in English. 'Hello, welcome,' a young man said. Another onlooker said she wished 'you have a warm stay'. But asked any questions that strayed from general niceties, they simply smiled and repeated their greetings. Mr Albanese was accompanied by Australian soccer legend Kevin Muscat. Mr Muscat is now head coach at Shanghai Port FC. 'A legendary Australian footballer, and now the manager here of Shanghai FC port and indeed, premiership winning manager here,' Mr Albanese told reporters from the promenade. 'One of the things about Australia and China that's so important is that we build people-to-people relations. 'And we do that by the participation of Australians here, whether it be here in football, whether it be the leading tournament that's going to take place in Chengdu, for the Australian Open, whether it be the business relationships that we have here as well.' China's charm offensive comes as Canberra and Beijing strive to focus on the positives of their relationship. Mr Albanese, who touched down in Shanghai on Saturday, has spruiked tourism, trade and people-to-people links. The Chinese government is acutely aware that Australia's relationship with the US is strained by the Trump administration's tariffs and the Albanese government's lacklustre defence spending. In the minds of Canberra and Beijing, both are reasons to talk more, not less. Ahead of Mr Albanese's lengthy state visit, China's ambassador invited the Albanese government to deepen the Australia's economic relationship with China and find consensus on differences — however chiasmic they may be. The envoy even teased co-operation on artificial intelligence. Though, Mr Albanese has so far neither embraced nor rejected the wooing and instead stuck firmly to his China mantra: 'We will co-operate where we can, disagree where we must, but engage in our national interest.'
