International Development News
Development News Edition

Eurozone yields stable before US-Sino trade talks; Portuguese yields fall

Eurozone yields stable before US-Sino trade talks; Portuguese yields fall
Image Credit: Pixabay

Eurozone government bond yields were little changed on Monday as investors weighed the prospects of a resilient economy in the United States against the concern that U.S.-Sino trade negotiations would fail. Friday's closely watched non-farm payrolls report showed the U.S. unemployment rate dropped to near a 50-year low of 3.5% in September, with job growth increasingly moderately, reducing expectations interest rates would be cut this month.

"Friday's job report should prove supportive for risk sentiment," said ING rates analysts in a note, adding that "weak wages reduce a key hurdle to Fed easing." But Chinese officials signalled they were increasingly reluctant to strike a broad trade deal pursued by President Donald Trump, and investors remained on the sidelines before the trade talks resume this week.

"Everybody's waiting for the trade talks," said Lina Fransson, fixed income strategist at SEB. "Markets will remain cautious ahead" of them. In addition, data showed German industrial orders fell more than expected in August on weaker domestic demand, more evidence that a manufacturing slump is pushing Europe's largest economy into recession.

Yields in the euro area traded broadly neutral, with the German 10-year Bund yield falling 0.4 basis points to -0.59 %. Portugal's 10-year government yield stood out, falling 1.4 bps to 0.13% after the country's ruling Socialists won parliamentary elections on Sunday.

The party fell short of an outright majority, though, meaning Prime Minister Antonio Costa will need to negotiate a new deal with one or both of his far-left allies. Portuguese bonds were also supported by news on Friday that DBRS has upgraded Portugal's credit to BBB.

Traders will be looking forward to the latest Federal Reserve minutes later this week, analysts say, but the main focus will be the U.S.-China trade negotiations expected in Washington on Oct. 10-11.

Also Read: American who leaked Singapore HIV data jailed in the United States

(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

RPT-UPDATE 1-Lebanon banking association agrees $1,000 weekly withdrawal cap - statement

The Association of Banks in Lebanon agreed a set of temporary directives for commercial banks including a 1,000 cap on weekly withdrawals from U.S. dollar accounts, the association said on Sunday, amid a worsening economic and political cri...

Poland aims to avoid rise in household energy prices - minister

Polands government aims to avoid an increase in household energy prices, the newly appointed minister for state assets said on Monday. Poland decided to cap power prices for 2019 at mid-2018 levels at a cost of about 9 billion zlotys, cover...

Ker govt not considering judicial probe into killing of

Kerala Chief Minister Pinarayi Vijayan on Monday ruled out a judicial inquiry for now into the recent killing of four Maoists in an alleged encounter and said a magisterial probe was on to look into the lapses on behalf of the police, if an...

Presidency welcomes newly appointed Brand SA Board of Trustees

The Minister in The Presidency, Mr. Jackson Mthembu and Deputy Minister in The Presidency, Ms. Thembi Siweya welcomed the newly appointed Board of Trustees of Brand South Africa as appointed by the President, in terms of the Trust Deed of t...

Give Feedback