Connect with us

archive

Germany‚??s Bonds Lead Soverign Debt Dip in Europe Amid Fed Tapering Bets

Germany‚??s government bonds led declines in the value of the euro region‚??s sovereign securities as a U.S. job report raised speculation that the Federal Reserve will taper its asset-purchase program. Germany’s 10-year bund yields climbed to the highest level in six weeks.

Germany‚??s Bonds Lead Sovereign Debt Valuation Dip in Europe Amid Fed Tapering Bets (Bloomberg)

Germany‚??s government bonds led declines in the value of the euro region‚??s sovereign securities as a U.S. job report raised speculation that the Federal Reserve will taper its asset-purchase program. Germany’s 10-year bund yields climbed to the highest level in six weeks, after euro-area data confirmed the region‚??s economy expanded for a second quarter, reducing demand for Europe‚??s benchmark debt. Demand fell as Germany auctioned 3.3 billion euros ($4.5 billion) of five-year notes. Italian 10-year bonds slid for a fourth day — the longest losing streak since July. Investors should sell bunds, along with Treasuries, gilts, gold, the Swiss franc and the yen, as the Fed begins to phase out its asset-purchase stimulus program, said Erik Nielsen, global chief economist for UniCredit SpA in Istanbul. Important economic data will arrive Friday, Dec. 6, when the U.S. Labor Department releases its November jobs report. ‚??Investors are fearing better nonfarm payrolls data on Friday would definitely put Fed tapering back on the agenda,‚?Ě said Alexander Aldinger, a fixed-income strategist at Commerzbank AG in Frankfurt. ‚??This is broadly the reason why bunds are lower and the periphery is selling off. The European data today is secondary.‚?Ě Germany‚??s 10-year yields climbed nine basis points, or 0.09 percentage point, to 1.81 percent at 4:19 p.m. London time to mark th highest level since Oct. 22. The 2 percent bund maturing in August 2023 fell 0.765, or 7.65 euros per 1,000-euro face amount, to 101.67.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Paul Dykewicz is the editorial director of the Financial Publications Group at Eagle Publishing Inc., www.eaglepub.com, of Washington, D.C. Eagle publishes five free, e-letters, 10 weekly trading services and five monthly investment newsletters, Forecasts & Strategies, Successful Investing, Cash Machine, Growth & Dividend Report and The Alpha Investor Letter. He also is the editor of Eagle Daily Investor and the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain."

Advertisement
Advertisement

TRENDING NOW:

Kavanaugh 2.0? Trump’s Rape Accuser E. Jean Carroll Should Face Tougher Questions.

CULTURE

Google Anti-Conservative Political Bias Google Anti-Conservative Political Bias

Google Admits It Wants to ‘Prevent The Next Trump Situation’

TECH

Drag Queen Reading Hour Can Be Stopped.

CULTURE

Democrat Presidential Hopeful Cory Booker Shared Pro-Farrakhan Images.

U.S. POLITICS

Connect
Newsletter Signup.

Sign up to the Human Events newsletter