Tag Archives: Eurozone

EasyJet sees flight and holiday bookings soar with hopes of UK travel restart | Instant News

LONDON, Feb.23 (Reuters) – EasyJet said flight bookings jumped more than 300% and holiday bookings jumped more than 600% week on week, after Britain planned the restart international travel, suggesting that the borders could reopen from mid-May. The British airline said travel from the UK to seaside destinations such as Malaga, Alicante and Palma in Spain, Faro in Portugal and Crete, Greece were the most popular destinations with the most eager holidaymakers. to travel in August. Reservations have come about despite continued uncertainty over how and when to reopen international routes. Vacationers will know more on April 12, when the government publishes a travel review. He said a lockdown ban on most international travel will remain until at least May 17. Britain’s vaccination plan is progressing rapidly and more than 17.7 million people, or a quarter of the population, have already received a first dose of the vaccine. hopes desperate airlines and travel agents to start generating revenue after pandemic restrictions that the UK can lift holiday bans and quarantine restrictions and allow travel from mid-May Governments foreigners must also agree that UK holidaymakers can visit without the need for quarantine. Currently, France and Spain, for example, have closed their borders to the British due to new variants of the coronavirus. (Report by Sarah Young, edited by Paul Sandle).

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German Bund yields hit new 8-month highs as reflex trading hit | Instant News

* Eurozone suburban government bond yields tmsnrt.rs/2ii2Bqr

LONDON, Feb 22 (Reuters) – Germany’s benchmark 10-year bond yields climbed to a fresh eight-month high on Monday, as bets on stronger economic growth and inflation in the coming months continue to put pressure on borrowing costs in the region. euro. .

So-called reflex trading was once again led by long-dated US Treasury yields, which on Monday climbed to their highest in about a year.

That set the tone for trading in the European bond market, with the yield on German 10-year Bund rising to -0.28%, a fresh eight-month high. That was up nearly 12 basis points last week, the biggest weekly jump since June.

The sell-off has sharpened Germany’s yield curve, with the gap between 2- and 10-year bond yields widest in nearly a year, at around 39 bps.

“In our view, this is not a buy-on-dip environment in interest rates, and sharp cuts have yet to be carried out,” said analysts at Mizuho in a note.

Perhaps a more worrying sign for policymakers, real or inflation-adjusted bond yields have also risen sharply in the past week. Germany’s 10-year inflation-related yield on Monday rose to -1.28%, the highest since last October.

Analysts at UniCredit say the rise in real yields has gone too far.

“Even general optimism about the global growth prospects will not be enough to justify the current 10-year Bund real rate of return,” they said in a note.

Focus now turns to central bank officials and their thinking about soaring borrowing costs, which could threaten an economy that is slipping into recovery from the coronavirus crisis.

European Central Bank chief Christine Lagarde is expected to speak on Monday evening, while US Federal Reserve Chair Jerome Powell delivers semiannual testimony before Congress on Tuesday.

Most 10-year bond yields in the euro area rose by 2-3 basis points on the day. The yield on Italian 10-year bonds rose 2.5 bps to 0.64%, 22 bps above the record low reached earlier this month.

Europe will decide whether to extend its suspension of rules limiting its budget deficits and debt, known as the Stability and Growth Pact, in the coming weeks, meanwhile Economic Commissioner Paolo Gentiloni said on Monday.

Reporting by Dhara Ranasinghe Editing by Gareth Jones


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Twitter is a goldmine for tracking consumers’ moods on prices, according to findings of the Bank of Italy | Instant News

ROME (Reuters) – The Bank of Italy on Monday said its experimental set of indicators from the content of millions of tweets accurately tracks consumers’ moods on prices, offering scope for a new powerful monetary policy tool.

The effort comes as economists and policymakers around the world increasingly turn to social media and other unconventional sources to measure consumer behavior and as inflation continues to exceed targets set by many of the leading central banks.

Researchers found their indicator, based on millions of tweets, was calculated not only by the final inflation readings and existing price expectation measures by Italy’s national statistical offices, financial markets and other forecasters, but also in real time and provided more detailed detail.

“The results suggest that Twitter can be a new, timely resource for devising methods of gaining trust,” said the authors of the 107-page study, adding they believe Italy-focused research can be replicated elsewhere.

Twitter has about 200 million monthly active users worldwide and had about 10 million active users in Italy as of 2019, the authors said.

The analysis began by collecting 11.1 million tweets posted in Italian between June 2013 and December 2019 that contained at least one of a pre-selected set of words related to inflation, prices and price dynamics.

“The reason for focusing on the purely raw tweet count is the intuitive idea that the more people talk about something, the more likely it is it reflects their opinion and that their views can influence other people’s expectations,” he said.

Then the dataset is “cleaned” to remove advertisements or tweets that use the word inflation in an unrelated context.

In this way, a tweet like “#Draghi: ‘We are saving Europe from deflation.’ Don’t count your chickens before they hatch! “Are kept, while others, such as” Only in Baby Glamor if you buy the three cheapest items for free. Promotional sales until October 10 ”are filtered.

The remaining dataset is used to construct two indexes based on expected increase or decrease in inflation by measuring the daily volume of tweets containing pre-selected word combinations such as “low price” or “very high price”.

“The fact that economic agents are talking about expensive bills should reflect higher inflation expectations,” the report said. “On the other hand, the people discussing falling oil prices should match expectations of lower inflation.”

The final set of indicators is then created based on the divergence between the two indices.

The authors say their work underscores the significance and policy implications of the information contained on social networks but acknowledges that further study is needed to interpret the data.

They also note that there have been cases of Twitter-based indicators being thrown off by viral social media events, for example when a record $ 236 million apartment sale in 2014 led to multiple tweets containing variants of the phrase “more expensive”.

Edited by Mark John and Raissa Kasolowsky


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

* Eurozone suburban government bond yields tmsnrt.rs/2ii2Bqr

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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UPDATE Eurozone bond yields fell, Italy hit an all-time low | Instant News

* Eurozone suburban government bond yields tmsnrt.rs/2ii2Bqr (Updating prices, adding to record low yields in Italy)

MILAN, Feb 11 (Reuters) – Eurozone borrowing costs fell on Thursday, with Italian 10-year bond yields dropping to all-time lows, as global markets focus on the dovish Federal Reserve outlook after unexpectedly weak reading on inflation US.

The European Commission, meanwhile, said the eurozone economy will recover less than previously thought from this year’s coronavirus slump, adding that 2022 growth will be stronger than previously estimated.

The yield on the German 10-year government bond fell 2.5 basis points to -0.463% after hitting a one-week low of -0.474%.

The 10-year US Treasury yield fell to 1.14%, far from a peak of 1.2% Monday, as US inflation data on Wednesday missed expectations.

On Wednesday evening, Federal Reserve Chairman Jerome Powell said he would like to see inflation hitting 2% or more before even thinking of easing super easy bank policies.

“Benign US CPI results in January mean markets don’t have to worry about a hawkish Fed for now. Looking at a broader set of indicators than just interest rates suggests that the trading reflection is alive and kicking. Risk appetite should continue to improve, driven by lower real interest rates, ”ING said in a note to clients.

According to Saxo Bank fixed income strategist Althea Spinozzi, the market believes that the lockdown and slowdown in the economy will be prolonged and that the central bank will continue to be dovish.

“Today’s decline in German bond yields is a rebound after the recent sell-off,” he added.

Italian bond yields hit all-time lows after borrowing costs fell to a new record depth at an auction on Thursday as Mario Draghi is expected to present his new coalition government in the coming days.

Italy’s anti-establishment 5-star movement is beginning to vote on whether to support Draghi’s cabinet, in what could be one of the last steps before a new government takes shape.

The yield on Italian 10-year government bonds fell 4 basis points, after hitting an all-time low of 0.461%.

The Italian / German 10-year yield spread trades at 91.5 basis points, approaching the lowest level in more than five years.

“We are unlikely to witness further declines in Italian bond yields over the next few weeks. But if Draghi gets the support of EU leaders for his coalition government and his projects, we could see further declines, “said MFS fixed income research analyst Annalisa Piazza.

The focus now turns to reading about Americans filing applications for weekly unemployment benefits at a later date.

Reporting by Sara Rossi; Edited by Larry King / Mark Heinrich / Pravin Char


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