LONDON, March 9 The single currency and
lower-rated euro zone government bond yields fell on Thursday
after the European Central Bank gave no indication that it would
scale back on its ultra-loose monetary policy stance.
The central bank kept interest rates unchanged and in an
accompanying statement it would keep rates at current or lower
levels for an extended period of time, and could ramp up its
bond buying programme if necessary.
The euro fell by as much as 20 ticks in a volatile few
minutes trade after the decision before recovering to stand at
$1.0555, still up 0.1 percent on the day.
Italian, Spanish and Portuguese 10-year government bond
yields fell a further 1-2 basis points immediately after the
announcement, and were down 4-5 bps overall on the day.
These "peripheral" government bonds are seen as the biggest
beneficiaries from a loose monetary policy stance from the
Euribor money market futures across the 2017-2019 strip
rose slightly, while Europe's bank stocks index
slightly cut gains after the central bank's statement and was
last up 0.1 percent. Broader stock indexes were little changed.
(Writing by Abhinav Ramnarayan; Editing by John Geddie)