Saturday April 18, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
German yields rise from 3-month low as Greek bonds jump on PMIs

By David Goodman & Lucy Meakin

Germany’s two-year note yield climbed from near the lowest in almost three months as data showed factory output in the euro area increased more than initially reported in January, damping demand for the safest assets.

Greek bonds advanced after a separate purchasing managers’ index showed the nation’s manufacturing industries expanded for the first time in 4 1/2 years last month. Yields on Italian and Spanish two-year securities fell to record lows. German bonds climbed last week amid speculation slowing inflation will prompt the European Central Bank will take more measures to stimulate the region’s economy at a policy meeting on Thursday.

“Across the board, they were pretty solid,” Owen Callan, an analyst at Danske Bank A/S in Dublin said, referring to the manufacturing gauges. “It supports the view that the euro zone recovery is still in place. If you were looking for the ECB to cut rates this week then this data doesn’t help that cause.”

Germany’s two-year yield climbed one basis point, or 0.01 percentage point, to 0.08 percent at 10:19 a.m. London time, after dropping to 0.06 percent on Jan. 31, the lowest since Nov. 7. The price of the zero percent note maturing in December 2015 fell 0.02, or 20 euro cents per 1,000-euro ($1,351) face-amount, to 99.855. The 10-year rate was at 1.66 percent.

An index based on a survey of purchasing managers in the euro bloc’s manufacturing industry increased to 54 last month from 52.7 in December, London-based Markit Economics said. That’s the highest since May 2011 and exceeded a Jan. 23 preliminary estimate of 53.9. A reading above 50 indicates growth.

A similar report for Greece’s manufacturing industry showed a reading of 51.2, the first reading above 50 since August 2009, according to Markit.

The yield on Greek 10-year bonds fell 14 basis points to 8.47 percent. The rate on similar-maturity Portuguese debt dropped to 4.93 percent, the lowest since June 2010.

German Finance Minister Wolfgang Schaeuble is planning additional financial aid for Greece, Der Spiegel magazine reported, quoting a Finance Ministry position paper. “There is no update,” Marco Semmelmann, a spokesman at the Finance Ministry, said by phone. “What the minister has repeatedly said still applies.”

Italian two-year yields fell four basis points to 0.89 percent, the lowest since Bloomberg started tracking the data in 1993. The rate on similar-maturity Spanish notes slipped to as low as 0.94 percent, also the least on record.

Germany’s five-year note yielded 0.66 percent after the rate slid to 0.64 percent on Jan. 31, the least since Nov. 21. The nation is scheduled to auction 4 billion euros of notes maturing in February 2019 on Feb. 5.

German bonds returned 2.1 percent this year through Jan. 31, Bloomberg World Bond Indexes show. Spain’s earned 2.9 percent and Italy’s gained 2.2 percent.

[Bloomberg]

ekathimerini.com , Monday February 3, 2014 (12:57)  
ECB examines possible Greek IOU currency in case of default, sources say
New bank programs to contain bad loans
Industrialists warn on mine intransigence
Early Easter boosts job hirings
Krugman advises against ‘nightmare’ euro exit
Economist and New York Times columnist Paul Krugman spoke at the Athens Concert Hall on Friday. Although Krugman was critical of the way that the eurozone has handled Greece’s crisis, he adv...
Brussels Group due to meet in wake of Obama’s call for Greek reforms
Greece and its lenders are due to get back down to business on Saturday with a meeting of the Brussels Group that Athens hopes will result in an interim agreement by the end of the month at ...
Inside News
BASKETBALL
Triumph for Olympiakos at Barcelona
Olympiakos produced its best away performance so far this season to defeat host Barcelona 76-63 on Friday and snatch the home advantage in the Euroleague play-offs. The Reds have now tied th...
BASKETBALL
Another heavy loss for improved Panathinaikos in Moscow
Panathinaikos raised its performance since Tuesday but still suffered a 20-point loss at CSKA Moscow on Thursday to find itself trailing 2-0 after Game 2 of the Euroleague play-offs. Having ...
Inside Sports
COMMENTARY
The Armenian genocide and Hagia Sophia
Pope Francis’s declaration that the slaughter of Armenians by Ottoman forces 100 years ago was “the first genocide of the 20th century” will hasten the conversion of the Hagia Sophia museum ...
EDITORIAL
Crime against education
The government’s plans for Greek state universities are nothing short of criminal. It took decades for us to mature enough as a society and for Parliament to accept, with an unprecedented ma...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Triumph for Olympiakos at Barcelona
2. Krugman advises against ‘nightmare’ euro exit
3. Brussels Group due to meet in wake of Obama’s call for Greek reforms
4. Crackdown on uni sit-in deepens rifts in SYRIZA
5. Greece, Cyprus hope for progress in peace talks
6. Komotini mosque damaged by fire, arson suspected
more news
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Putting off payments led to Q1 budget primary surplus
3. Obama calls for flexibility in Greek reform talks in brief exchange with Varoufakis
4. Greek finance minister says cannot sign existing loan deal
5. Greece enters twilight zone as visions of euro exit take shape
6. Fourteen face charges after police enter Athens University grounds, ending sit-in
Today
This Week
1. Quarantine for Greek bank subsidiaries in neighboring countries
2. Greece and lenders head back to technical talks
3. Contraband is big business in Greece
4. FYROM push expected at EU meeting
5. Islands of eastern Aegean struggle as migrant influx triples
6. Greek finance ministry hits back at German newspaper report
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.