Sumary of Euro zone yields dip, ECB says could reduce bonds buys:
- Article content AMSTERDAM/LONDON — Euro zone bond yields dipped on Thursday amid uncertainty over the bloc COVID-19 vaccination program, while minutes of the European Central Bank March meeting showed policymakers were ready to reduce bond purchases if conditions allowed..
- job data while dovish Federal Reserve minutes released on Wednesday showed the central bank was in no rush to raise interest rates..
- In late afternoon trading, safe-haven euro zone bond yields ticked lower, with Germany 10-year yield, the benchmark for the bloc, losing around 1.2 basis point at -0.33%..
- Italian 10-year bond yields were down 3 basis points at 0.67%, keeping the closely watched risk premium with Bunds at about 100 basis points but below the four-week high it touched on Wednesday..
- Minutes of the ECB March meeting published on Thursday showed policymakers debated a smaller increase in bond purchases and agreed to front-load the buying this quarter on condition it could be cut later if conditions allowed..
- Monthly bond buys under the ECB 1.85 trillion-euro Pandemic Emergency Purchase Programme (PEPP) jumped by over a fifth last month, enough to stabilize nominal bond yields and push inflation-adjusted yields back to their early-year lows..
- Sources told Reuters at the time that hawkish policymakers were skeptical about increasing the purchases and some saw rising nominal bond yields as a potentially welcome sign of economic recovery..
- Lagarde comments came as data showed euro zone producer prices rose at an accelerated year-on-year pace in February as the cost of energy and intermediate goods went up, underlining expectations of faster consumer price growth in the coming months…