LONDON: Benchmark German 10-year bond yields rose to 2-1/2 week highs on Monday and were set for their biggest daily rise in three weeks, after the ECB’s Francois Villeroy de Galhau said the central bank could give fresh guidance on the timing of its first rate hike as the end of its bond stimulus approaches.
The comments caught the bond market off guard in a relatively thin market and in a week where corporate bond supply is expected to dominate sentiment, analysts said.
German 10-year bond yields rose to 0.60 percent, its highest levels since April 26 and were up 4 basis points on the day.
Two-year yields were up 2 basis points.
The Bank of France governor said that whether the decision to end the European Central Bank’s net asset purchases came at its September or December meeting was “not a deep existential question”.
Source: Brecorder
