BUSINESS

Peripheral bond yields slide after ECB stimulus plan

TAGS: Markets, Coronavirus, Economy, EU, Euro

Yields on Southern European government bonds fell on Thursday after the European Central Bank clearly signaled it will provide more stimulus at its next meeting to contain the growing fallout from a second wave of coronavirus infections.

The central bank’s Governing Council left policy unchanged this time around but committed to take more action as new national lockdown measures make a double-dip recession increasingly likely for the eurozone economy.

Greek bonds, rated junk and only eligible for ECB emergency bond buying, retraced earlier losses, with the 10-year yield last up 1 basis point at 0.97%, after rising to 1.10%, their highest in over a month.

[Reuters]

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