Tag Archives: Eurozone

UPDATE 1-yields on Italian bonds fell to 7-week lows, Bund yields at one-month highs | Instant News

* Difference in Italian / German Roundabout results below 200 bps

* Italian 10-year yields fell to their lowest level in nearly 7 weeks

* German Bund results at one month highs (Updates throughout, adds details, graphs, comments)

By Dhara Ranasinghe

LONDON, May 26 (Reuters) – Italian 10-year bond yields fell to a seven-week low on Tuesday, following a rally in risky assets and when comments from European Central Bank officials boosted hopes of further stimulus soon.

Italy’s borrowing costs fell for seven days in a row, falling sharply after the Franco-German proposal a week ago for a € 500 billion recovery fund that would offer grants to areas hardest hit by the coronavirus pandemic.

The latest price hike, pushing 10-year yields to as low as 1.53%, comes when world stocks strengthen because of hopes for a fast global economic recovery and comments from ECB policymaker Francois Villeroy de Galhau pushes new stimulus hopes at the ECB meeting next week.

As Italian 10-year bond yields fell to their lowest level in seven weeks, the gap over the highest German Bund yields fell below 200 basis points for the first time since mid-April.

“The positivity of the Franco-German fund continues to see the periphery supported, and that positivity will continue unless there is a massive decline by either France or Germany,” said Henry Occleston, tariff strategist at Mizuho.

He noted that the slow progress in setting up recovery funds meant the issuance of hefty bonds from Spain and Italy.

“That means it is very important for the ECB to expand its purchases there to prevent future debt crises. “That’s where Villeroy’s comments were put into, as providing further support for the expansion of peripheral assets,” Occleston said.

Speaking on Monday night, Villeroy said some eurozone central banks must be prepared to buy more bonds and others to ensure the smooth transmission of monetary policy.

Nick Kounis, head of financial market research at ABN AMRO, said Villeroy’s comments suggested the ECB was willing to deviate sharper than the key capital under the emergency bond purchase program.

Although the ECB buys government bonds in accordance with the ownership of each country’s shares in banks, which are called capital keys, the ECB says it will be flexible and may deviate from this rule by purchasing emergency bonds.

Italy has been the main beneficiary of loading ahead of ECB asset purchases in recent weeks.

“The Governor of Banque de France is an influential member of the Governing Council so language changes need to be taken seriously. We doubt he flies alone in this regard, “said the Communists.

As world stocks reap strong gains and the bond market prepares for a new wave of eurozone bond supply this week, yields on higher-rated bonds shot higher.

Yields on German 10 and 30-year bonds rose to one-month highs with 10-year Bund yields rising by almost 6 bps to -0.42%.

Reporting by Dhara Ranasinghe, edited by Kirsten Donovan


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The Italian / German 10-year bond yield gap is below 200 bps for the first time since mid-April | Instant News

LONDON, May 26 (Reuters) – The tightly watched 10-year bond yield gap between Italy and Germany ranked highest fell below 200 basis points on Tuesday for the first time since mid-April, reflecting hopes for recovery funds across Europe and beyond European Central Bank stimulus.

Italian 10-year bond yields fell to 1.56%, the lowest level in nearly seven weeks, pushing the gap on the German Bund yield to just under 200 basis points. (Reporting by Dhara Ranasinghe, editing by Huw Jones)


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Ships attack in the Gulf of Aden near the coast of Yemen, British Maritime Trade Operation says – World News | Instant News

A ship was attacked in the Gulf of Aden on Sunday, off the coast of Yemen’s Mukalla port, the British Maritime Trade Operation (UKMTO) said, without giving further details.

“Ships transiting in that area are advised to be careful,” UKMTO said in a warning on its website. The attack occurred at 1230 GMT, he said.

Maritime security firm Dryad Global said it was the ninth incident reported in the Gulf of Aden this year.


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Deforestation in the wave of the coronavirus that was hit by Brazil, Bolsonaro prepared US troops | Instant News

Deforestation in the Brazilian Amazon rainforest increased sharply in April, government data showed on Friday, when a coronavirus outbreak sent many environmental enforcers out of the field and the country was preparing to deploy troops to combat illegal logging.

Destruction of the Brazilian section of the Amazon increased 64% in April, compared to the same month last year, according to preliminary satellite data from the INPE space research agency.

In the first four months of this year, Amazon deforestation rose 55% from last year to 1,202 square kilometers (464 square miles), according to INPE data.

The Amazon is the largest tropical rainforest in the world, and scientists say its preservation is very important to curb global warming because of the large amount of greenhouse gases it absorbs.

Amazon’s destruction surged to its highest level 11 years ago last year and continues to rise in 2020, blamed by environmentalists for policy Right-wing President Jair Bolsonaro who have encouraged illegal loggers, miners and breeders.

Bolsonaro has called for more agriculture and mining in protected forest areas, saying it is the only way to lift regions out of poverty.

The new coronavirus outbreak has complicated efforts to combat deforestation, with environmental enforcement agency Ibama sending fewer agents to the field due to health risks. The agency said it would reduce the scale of field agents in other risk areas but not in the Amazon.

“The pandemic doesn’t help because there seem to be fewer agents out there, and illegal loggers obviously don’t care about viruses in remote areas of the Amazon,” said Paulo Barreto, senior researcher for the Amazon non-profit organization Imazon.

Barreto and other environmentalists, including Greenpeace, said the spike had taken place last year because of government measures that encourage illegal logging, especially decisions now before Congress that could give rights to land grabbers who invaded public and customary land.

When deforestation surged, Bolsonaro on Thursday allowed the deployment of the armed forces to prevent illegal loggers and fight deforestation and forest fires in the region. Proponents of the environment say the action might help in the short term but not a long term solution.

Bruno Kelly / REUTERS

Ibama agents have expressed disappointment that deforestation has continued to surge in recent months despite the current rainy season in the Amazon, which makes forests more difficult to cross and usually hinders illegal loggers.

Parts of the Amazon which are hotspots for deforestation such as the southern states have experienced higher than average rainfall levels, which would normally cause a decrease in deforestation, Carlos Nobre, an earth systems scientist at the University of Sao Paulo, told Reuters.

Nobre warned that rain would decrease in the next three months during the dry season, which is when deforestation peaked for most of the year.


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Russia overtook Germany and France in the number of coronavirus cases after recording a daily increase – World News | Instant News

The number of cases of Russian corona virus jumped to 177,160 on Thursday after a record daily increase in infections, which means it now has the fifth highest number of registered cases in the world and more cases than in Germany or France.

The number of new cases of novel viruses jumped 11,231 in the past 24 hours, the country’s coronavirus virus task force said.

Coronavirus Tracker: Direct statistics of cases and deaths in Israel and around the world >> L.atest coronavirus story

More than half of all cases and deaths are in Moscow, the center of the Russian outbreak, which on Thursday reported an overnight increase of 6,703 new cases.

Russia’s official death toll, which is still far lower than in many countries, rose to 1,625 after 88 people died overnight, the task force said.

Sergei Sobyanin, mayor of Moscow, said on Wednesday that confirmed cases were increasing in the capital because authorities had sharply increased testing and that the actual situation was rather stable.

Russia says it has carried out more than 4.8 million coronavirus tests.

President Vladimir Putin on Wednesday supported a plan proposed by Sobyanin to gradually start lifting some lock restrictions after May 12, allowing for example certain industrial facilities to start working.

Moscow and other Russian regions are in the sixth week of closing.

The residents of the capital have been ordered to stay at home except under certain circumstances such as going out to buy food and medicine. They must get a digital permit to travel anywhere by public or private transportation.

Russia’s relatively low mortality rate has prompted some Kremlin critics to suggest that authorities might cover the true number of victims of the outbreak by failing to correctly identify deaths due to the corona virus.

Authorities denied the allegations, pointing out that the Russian coronavirus outbreak began later than in many other countries, allowing it to better prepare for the pandemic.

Russia now has the fifth largest number of cases in the world, according to calculations kept by John Hopkins University in the United States.


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