Euro zone bond yields reached two-week declines while the Central Bank meetings this week has eased the uncertainty of investors regarding their capability to boost growth and inflation. The Fed held U.S. interest rates unchanged and also slowed down expectations of the pace of future increases in interest rates.
Germany’s benchmark 10-year Bund yield declined by over five basis points to -0.05 percent, which is its lowest level in nearly two weeks. Bund yields are now decisively under the zero percent mark. Bond markets are currently under pressure due to the impression that the effectiveness of the central bank stimulus is declining, as the European Central Bank disappointed some investors during early September with a lack of policy action. Other euro zone bond yields decreased by 5-7 bps, as yields in most parts of the bloc declined to two-week lows.
Two-year bond yields in Greece declined by 6.02 percent, which is its lowest levels since 2015.
The material has been provided by InstaForex Company – www.instaforex.com