The European Central Bank is now more confident that inflation will fall back to its 2% target by mid-2025
The de-escalation of bond yields in the secondary market continued today, as was also recorded in the auction of the six-month interest-bearing Greek Treasury bills.
The mood in the market remains positive, as the expectation for the first reduction in interest rates by the European Central Bank in June is being established.
The European Central Bank now estimates with greater certainty that inflation will ease again to the 2% target by mid-2025; as wage growth moderates, ECB Governing Council member said today, Piero Cipollone.
“Wage growth appears to be moving within range, to moderate gradually over the medium term to levels consistent with our inflation target and productivity growth, in line with forecasts,” Cipollone said at an event in Brussels.
It is noted that the market is discounting that the ECB will cut interest rates in June, but remains divided on whether there will be two or three more moves before the end of this year
In the secondary bond market today, and more specifically in the Electronic Transaction System (HDAT) of the Bank, transactions of 98 million euros were recorded, of which 36 million euros related to purchase orders.
The Greek 10-year bond yield fell to 3.36% from 3.38% that closed yesterday, against 2.29 % of the corresponding German title, resulting in a spread of 1.07
In the foreign exchange market, the euro moves downwards against the dollar, with the result that in the afternoon the European currency trades at 1.0818 dollars. from the $1.0839 level, which opened the market.
Source: Skai
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