Saturday, 19 October 2019
Latest news
Main » Inflation 'subdued', European Central Bank chief says, suggesting bond buying could be extended

Inflation 'subdued', European Central Bank chief says, suggesting bond buying could be extended

03 March 2018

That pushed down 10-year USA yields to two-week lows while the yield curve - the gap between the 5- and 30-year yields - steepened, having flattened after Powell's upbeat assessment on Tuesday.

Inflation in the Eurozone fell back in February as growth in the cost of services fell back in a development which will confirm European Central Bank (ECB) bosses' hesitance to signal a tightening of policy.

The 10-year "transatlantic spread" was at 221 bps, close to its widest in over a year.

Combined with steady 2.9 percent growth in lending to households, overall lending to the private sector expanded by 3.3 percent last month, picking up the pace by 0.4 percentage points.

More news: The 5 'New' Types of Diabetes, Explained

Reiterating previous comments, Weidmann said market expectations for a hike next year were "not completely unrealistic".

LONDON, Feb 26 (Reuters) - Euro zone government bond yields drifted lower on Monday with Germany's benchmark Bund yield briefly touching a one-month low, as investors positioned for a run of potentially market-moving data and events this week.

Nonetheless, the rate came in line with expectations.

"If a similar message to this gets communicated at the rates meeting, it could take the wind out of the sails of those expecting a repricing of the rates curve", said Mizuho strategist Peter Chatwell.

More news: Storm Emma: New Red alert issued for snow

It is 15 bps below a more than two-year high hit earlier this month.

Latest data has shown euro zone consumer prices rising just 1.2 percent in February, well below the central bank's target of just below 2 percent.

Three sources told Reuters on Wednesday the European Central Bank could discuss tweaking its communication stance at the March 8 meeting, but no major policy shift is expected.

More news: East And West, Both Coasts Brace For Major Winter Storms

Inflation 'subdued', European Central Bank chief says, suggesting bond buying could be extended