Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

European bonds slump on firm oil prices

The European bond prices declined on Wednesday as a rally in oil prices boosted European equity market sentiments. Oil futures bounced off 1-month lows as Kuwait's OPEC governor and two sources said all signs suggested a meeting of oil-producing countries on April 17 would deliver an agreement to freeze output.

The benchmark French 10-year bonds yield, which is inversely proportional to bond price rose 2.88 pct to 0.465 pct, German 10-year bunds yield climbed 17.14 pct to 0.125 pct, Italian equivalents jumped 0.96 pct to 1.287 pct, Portuguese 10-year bonds yield inched higher 3.99 pct to 3.076 pct, while Spanish 10-year bonds yield nudged up 1.27 pct to 1.513 pct and U.K 10-year gilts yield rose 0.47 pct to 2.128 pct at 11:41 GMT.

The Eurozone bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the European Central Bank's target. The International benchmark for crude oil prices, Brent futures rose 2.35 pct to $38.76, while West Texas Intermediate crude oil rallied more than 3 pct, while on Wednesday.

The Eurozone Retail PMI for March dipped to 49.2 from 50.1. The new figure, while pointing to a slight contraction in consumer spending, is above the readings for November-January.

German industrial output fell less than expected in February after jumping in January, data showed on Wednesday, in a sign that the sector is likely to give Europe's largest economy a modest push in the first quarter of 2016. Output edged down 0.5 pct on the month, data from the Economy Ministry showed. That was well above the mid-range forecast in a Reuters poll for a 1.8 pct decline.

Meanwhile, the pan-European STOXX 600 index rose 0.1 pct and the euro-are blue-chip gauge, the STOXX 50, gained 0.2 pct. The FTSE 100 Index is up 0.57 pct, the DAX trading 0.10 pct higher and the CAC-40 rose 0.60 pct.

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.