{"id":34210,"date":"2023-05-04T12:52:29","date_gmt":"2023-05-04T12:52:29","guid":{"rendered":"https:\/\/lynettelockhart.com\/client\/euro-zone-bond-yields\/"},"modified":"2023-05-04T12:56:22","modified_gmt":"2023-05-04T12:56:22","slug":"euro-zone-bond-yields","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/euro-zone-bond-yields\/","title":{"rendered":"Euro zone bond yields and euro fall after ECB hikes rates"},"content":{"rendered":"<p>LONDON (Reuters) &#8211;     Euro zone government bond yields fell along with the euro on Thursday after the European Central Bank raised interest rates by 25 basis points (bps), as expected.<\/p>\n<p>The two-year German yield, which is sensitive to interest rate expectations, was last down 10 bps to 2.58%, its lowest level in a month, compared to 2.683% before the decision. Yields move inversely to prices.<\/p>\n<p>Germany&#8217;s 10-year bond yield was last roughly flat at 2.253%, having traded 3 bps higher at 2.283% just before the decision. <\/p>\n<p>The ECB raised its main rate to 3.25% from 3%, meaning it has now carried out 375 bps of increases since July. <\/p>\n<p>Investors had been broadly expecting the move, although some had expected a bigger 50 bp increase.<\/p>\n<p>The central bank also said it would stop reinvesting cash from maturing debt in its 3.2 trillion euro Asset Purchase Programme from July.<\/p>\n<p>The euro fell after the decision and was last down 0.38% at $1.102.<\/p>\n<p>The pan-European STOXX 600 trimmed some losses but was still down 0.5% on the day.\u00a0<\/p>\n<p>&#8220;They obviously scaled down the size of the move but the message has not changed much from March,&#8221; said Marchel Alexandrovich, European economist at Saltmarsh Economics. <\/p>\n<p>&#8220;The message the ECB is trying to send to the markets is that they have more work to do. This is not a repeat of what we saw from the Fed yesterday. They will raise rates again.&#8221;<\/p>\n<p \/>\n<p> (Reporting by Harry Robertson; editing by Danilo Masoni, Kirsten Donovan)<\/p>\n<p><a href=\"https:\/\/lynettelockhart.com\/client\/euro-zone-bond-yields\/file-photo-the-headquarters-of-european-central-bank-ecb-in\/\"><img decoding=\"async\" src=\"https:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ430IK-VIEWIMAGE.jpg\" alt=\"tagreuters.com2023binary_LYNXMPEJ430IK-VIEWIMAGE\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON (Reuters) &#8211; Euro zone government bond yields fell along with the euro on Thursday after the European Central Bank raised interest rates by 25 basis points (bps), as expected. The two-year German yield, which is sensitive to interest rate expectations, was last down 10 bps to 2.58%, its lowest level in a month, compared [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":34211,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1216],"tags":[],"class_list":["post-34210","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-economy"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportEconomy\/tagreuters.com2023binary_LYNXMPEJ430IK-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=34210"}],"version-history":[{"count":1,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34210\/revisions"}],"predecessor-version":[{"id":34212,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/34210\/revisions\/34212"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/34211"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=34210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=34210"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=34210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}