LONDON Oct 4 Euro zone bond yields soared
across the region and the euro rose late on Tuesday after media
reports of an ECB plan for tapering its asset-purchase
The European Central Bank will probably slowly wind down
bond purchases before it ends quantitative easing and could do
so in steps of 10 billion euros ($11.2 billion) a month,
Bloomberg news cited euro zone central bank officials as saying.
That triggered a sell-off in euro zone bonds, which have
been underpinned by the 1.7 trillion euro bond-buying scheme.
Italian and Spanish 10-year bond yields rose as much as 8
basis points each on the day to
two-week highs, while benchmark 10-year German Bund yields rose
5 bps to minus 0.042 percent -- their highest
level in about 1-1/2 weeks.
German 30-year bond yields also rose sharply and were up 6
bps on the day at 0.54 percent, while the euro
rallied on the report.
The euro rose past 88 pence for the first time
since early 2-013 on the report.
(Reporting by Dhara Ranasinghe, John Geddie and Anirban Nag,
editing by Nigel Stephenson)