Even with French, Austrian and Belgian bond revenues falling by the records, overall the European government bond yields rose this week. With this, the European Central Bank stated it would keep policies to accommodate the increasing revenues as well as the Bank of Japan asset purchases.
The ten year revenues of French bonds fell most this July after ECB President Mario Draghi assured that policy makers would help boost the regions faltering economies. The Italian and Spanish bond yields also gained in a market termed as peripheral securities in light of the Bank of Japan's 7.5 trillion yen or US$77.4 billion of asset purchases. German bond yields on the other hand rose because of a US report of lower employment gains for the period.
French ten year yields dropped 27 basis points or 0.27 of a percentage point to its lowest level since Bloomberg compiled data on these securities since 1990. The bond due on October 2022 rated at 2.25% rose about Eur23.85 per Eur1000 or US$1,302 face amount.
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