![]() ![]() Strong economic data has helped pushed up bond yields, and has caused some central bankers to publicly make the case for more rate hikes. Germany's 2-year yield, which is sensitive to interest rate expectations, was down 1 bp at 2.778%. Italy's 10-year yield was roughly flat on Friday at 4.302%, putting it on track for a weekly increase of 13 bps. Europe's Stoxx 600 was up 0.46% for the week as of Friday. S&P 500 stock index has risen 1.79% so far this week. "There are more hopes now that it could be solved so that is boosting sentiment and lifting rates, and also affecting stock markets," said Jussi Hiljanen, head of European rates strategy at lender SEB. Yet a commitment from Democrats and Republicans this week to strike a deal on raising the $31.4 trillion borrowing limit, and avoid default, has improved the mood in markets. Investors had bought government bonds - pushing their yields lower - due to fears about the U.S. It has risen 16 bps since Monday, the biggest increase since the week ending April 14. Germany's 10-year bond yield, the benchmark for the euro zone, was last up 2 basis points (bps) at 2.429%. ![]()
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