The Commission’s announcement on the reinstatement from 2024 of the strictest fiscal measures that were in force until 2019, i.e. before the outbreak of the covid pandemic, had a positive impact on the bond market
The decline in prices continued today with a simultaneous rise in bond yields in the secondary market, after the disappointing figures for the GDP of the last quarter of 2022 in the eurozone.
The Commission’s announcement on the reinstatement from 2024 of the strictest fiscal measures that were in force until 2019, i.e. before the outbreak of the covid pandemic, had a positive impact on the bond market. However, he favored only the bonds of the “hard core of the euro” and even the German ones.
In the domestic market, on the contrary, bond prices moved downward. In the annual interest auction carried out by ODDIX, a significant increase in the interest rate was recorded to 3.75% from 2.73% that was formed in the previous auction, and 0.23% that was in March 2022. In the secondary market, in the Electronic System Transactions (HDAT) the volume of transactions amounted to 62 million euros, of which 52 million euros related to purchase orders. The yield on the benchmark 10-year bond rose to 4.49% from 4.46% yesterday versus 2.64% for the corresponding German bond, bringing the spread to 1.85% from 1.74% that closed yesterday.
In the foreign exchange market, the euro is moving higher against the dollar today as the European currency traded at $1.0554 in the early afternoon from the level of $1.0547 that the market opened.
The indicative euro/dollar exchange rate announced by the ECB was 1.0665 dollars.
Source: Skai
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