LONDON, April 25 Euro zone government bond
yields rose broadly and the euro firmed on Tuesday after Reuters
reported that European Central Bank policymakers see scope for
sending a small signal in June towards reducing monetary
Three sources on and close to the bank's Governing Council
told Reuters that with the threat of a run-off between two
eurosceptic candidates in France averted, and with the economy
on its best run in years, there may be tweaks to the ECB's
opening statement in June.
Benchmark German government 10-year bond yields hit the
day's high of 0.39 percent in the wake of the story,
up nearly 6 basis points on the day. The euro rose as high as
$1.0933, breezing past previous resistance at $1.0912.
"There is a general forced liquidation of euro shorts. That
may have been the trigger but the market is so over-sensitive
right now to anything that is top side euro. It is 'buy on the
dips' until further notice," said Steven Gallo, a London-based
strategist with Canada's Bank of Montreal.
(Reporting by John Geddie and Patrick Graham)