In the foreign exchange market, the euro reacted positively after retreating to the lowest level of the last 20 years, as a result of which it recovered slightly in the early afternoon and traded at 1.003 dollars.
Volatility remains in European bond markets as fears of a slowdown in growth intensify, while the biggest bond buyer, the ECB, has now begun to withdraw.
The latest development actually has the effect of noticeably limiting the liquidity of the market.
Even German bonds, which are considered the safest in the eurozone, have not been spared from the nervousness and large fluctuations in yields.
The scene is completed by the imminent interest rate hikes by the ECB, but also by the large retreat of the euro to the lowest level of the last 20 years against the dollar (0.9913). The market is discounting after a 0.5% rate hike last month, another equal amount (0.5%) in September.
In fact, ECB member F. Panetta warned today that although the ECB may need to adjust its monetary policy further, the possibility of a recession is increasing.
In HDAT, transactions of 67 million euros were recorded, of which only 10 million euros related to purchase orders. The yield on the 10-year bond rose to 3.86% from 3.69% yesterday versus 1.31% for the German counterpart, bringing the spread to 2.55% from 2.43% yesterday.
In the foreign exchange market, the euro reacted positively after retreating to the lowest level of the last 20 years, as a result of which it recovered slightly in the early afternoon and traded at 1.003 dollars.
The indicative price for the euro/dollar exchange rate announced by the ECB was 1.9927 dollars.
RES-EMP
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