Germany, most other eurozone bond yields hit multi-month highs | Instant News

* Eurozone suburban government bond yields

LONDON, Feb 15 (Reuters) – Most eurozone bond yields rose to multi-month highs on Monday with investors betting on brighter economic prospects and rising inflation as oil prices climb to their highest in more than a year.

Ten-year bond yields in Germany, France and the Netherlands all rose to their highest levels since early September, while yields on German 30-year bonds climbed to eight-month highs.

The selloff in major bond markets has picked up in recent sessions, as the launch of the coronavirus vaccine and US fiscal stimulus fueled expectations of a strong economic recovery.

The benchmark US Treasury yield rose to the highest level since March on Friday, pushing prices lower. This sell-off, along with the rise in the price of Brent crude to highs above $ 63 a barrel weighed on eurozone debt markets on Monday.

Germany’s benchmark 10-year Bund yield rose 4 basis points to a 5-1 / 2 month high of -0.387%.

The yield on the 30-year bond, up 20 bps so far this month, is up to an eight-month high of nearly 0.13% – after trading in negative yield territory more than a week ago.

Across the euro area, yields on long-term bonds in higher-rated markets such as the Netherlands and France rose 4-5 bps points on the day.

“The reflective sentiment remains alive and kicking, albeit with opportunities for short-term consolidation in the Bunds following the latest selloff,” said Commerzbank strategist Rainer Guntermann.

With the US bond market closed for the holidays and parts of Asia closed for the Lunar New Year, trading on financial markets was generally sluggish.

Italian bonds continued to outperform their eurozone counterparts but their yields also edged up Monday, with the Italian 10-year bond yield up 2 bps on the day at 0.51% – still maintaining last week’s record low.

Mario Draghi, the former head of the European Central Bank, was sworn in as prime minister of Italy on Saturday to lead a unity government that must steer the country out of the coronavirus crisis and economic downturn.

Politics is also in focus in Spain, where separatist parties are likely to jointly win a majority of seats in Catalonia’s regional parliament. The elections are seen as a test of the strength of the regional pro-independence movement in an era now dominated by the pandemic.

Reporting by Dhara Ranasinghe; Edited by Pravin Char


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