MW: Eurozone bond yields tick lower as ECB leaves rates unchanged
Eurozone bond yields ticked lower on Thursday after the European Central Bank left interest rates unchanged.
The ECB chief is likely to play down any suggestion of a potential tapering of the bank’s bond-buying program but is also likely to hold off on announcing any extension. In a statement, the ECB said the Governing Council “confirms that the monthly asset purchases of €80 billion euros a month are intended to run until the end of March 2017, or beyond, if necessary, and in any case until it sees a sustained adjustment in the path of inflation consistent with its inflation aim.”
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The yield on the 10-year German bund TMBMKDE-10Y, +35.08% considered the eurozone’s benchmark bond, trimmed its gain to 0.041%, up 1.1 basis point on the day. Meanwhile, the Italian 10-year bond TMBMKIT-10Y, +0.62% climbed 0.4 basis point to 1.387%.
In the U.S., Treasury yields moved lower in sympathy, with the 10-year Treasury yield TMUBMUSD10Y, +0.25% essentially flat at 1.747%. The 2-year Treasury note TMUBMUSD02Y, +1.54% at 0.811% compared with 0.803%, and the yield on 30-year Treasury TMUBMUSD30Y, -0.01% known as the long bond, stood at 2.510% compared with 2.515% on Wednesday.
ECB President Mario Draghi is slated to deliver his postmeeting statement during a news conference scheduled for 8:30 a.m. Eastern.
