International Development News
Development News Edition

Eurozone government yields extend decline as traders await US jobs report

Eurozone government yields extend decline as traders await US jobs report
Image Credit: Pixabay

Eurozone government bond yields edged lower on Friday as traders focused on the effect U.S. tariffs might have on the European Union economy and bought safe-haven government bonds. Bonds started to rally on Thursday, after United States said on Wednesday it would impose 10% tariffs on European-made Airbus planes and 25% duties on European products such as French wine, as punishment for illegal EU aircraft subsidies.

A eurozone bond rally had stalled earlier in the week-- while U.S. Treasury yields tumbled -- as concern grew that the European Central Bank had limited room to boost growth and inflation. But dismal economic data in the United States revived fears of recession and pushed eurozone yields back down. In early trade, 10-year bond yields across the bloc fell 1 to 2 basis points. Benchmark German 10-year Bund yields were down 1.8 bps at -0.59%.

Traders will be watching whether eurozone yields fall further on Friday by a U.S. non-farm payrolls report that comes in weaker than expected, raising expectations the Federal Reserve will cut interest rates by 25 basis point at the end of October. "A weak (U.S. payrolls) number would be seen as putting some pressure on the Fed to consider further rate cuts this autumn," said Andy Cossor, rates strategist at DZ bank.

"Time will tell" whether the U.S. central bank's two rate cuts this year will be enough, Dallas Federal Reserve Bank President Robert Kaplan said on Thursday, but he is willing to do more "if it's necessary." That would push down eurozone yields, but the fall would only be temporary, Cossor said. The "eurozone will be thinking about its own economic problems," referring to the impact of U.S. tariffs.

A Reuters poll forecast that 145,000 jobs were added in the United States in September, more than August's 130,000 jobs. Elsewhere, Italy was ready to issue its first new dollar bond in nearly a decade, sources told Reuters on Thursday. The sale may be announced as early as next week.

Also, DBRS is expected to review its positive-outlook rating for Portugal on Friday night. Portugal holds a parliamentary election on Sunday; Prime Minister Antonio Costa is expected to win re-election.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



'No escape from telephones', this 1953 prediction actually comes true

In 1953, a telephone company chief predicted that therell be no escape from telephones in the future....

With Ayodhya verdict, CJI starts clearing high profile pending cases

Ending all the speculations, the Chief Justice of India Mr. Ranjan Gogoi who is due to retire on November 17 decided to deliver the verdict in Ayodya dispute at 10.30 am on Saturday which is not a working day for the Supreme Court. This is ...

How partnerships and collaborations could enhance teacher training

Monica Malhotra Kandhari, Managing Director, MBD Group shares her views on public private partnership and collaborations in education sector. She supports her propositions with her organisations success stories....

Fixed Test centers would facelift level of WTC in India

The venues for the test matches in India should be fixed so that World Test Championship matches remain fair....


Latest News

U.S. Congress panel leader reports slow progress negotiating 2020 Pentagon budget

U.S. legislators are making slow progress negotiating the bill that will set spending policy for the Department of Defense in 2020, the head of the U.S. House of Representatives Armed Services Committee said on Wednesday.Democratic Represen...

UPDATE 1-Roger Stone trial closes with dueling versions of motives in 2016 Trump campaign

Prosecutors delivered closing arguments in the trial of U.S. President Donald Trumps adviser Roger Stone on Wednesday, saying the Republican operative lied to Congress about his efforts to keep abreast of when WikiLeaks might dump damaging ...

UPDATE 1-Poll gives UK PM Johnson's Conservatives 10-point lead in election

British Prime Minister Boris Johnsons Conservatives have a healthy 10-point lead ahead of an election on Dec. 12, a poll by Savanta ComRes showed on Wednesday, extending their advantage over Labour after the Brexit Party stood down candidat...

Cricket-Pucovski withdraws from Australia squad again

Promising batsman Will Pucovski has ruled himself out of selection for Australias test series against Pakistan due to matters pertaining to mental wellbeing, Cricket Australia said on Thursday. The 21-year-old right-hander was in the runnin...

Give Feedback