LONDON, April 27 The euro sank to a day's low
and European stock markets and bond yields fell back on
Thursday, undoing initial gains, after European Central Bank
chief Mario Draghi said policymakers did not discuss removing
the bank's easing bias on monetary policy.
Markets had initially surged on language in the bank's
statement, read by Draghi, which said the recovery was
increasingly solid and that downside risks to the euro zone's
recovery had diminished.
But other parts of the statement and Draghi's replies to
questions stressed the barriers the ECB still faces before
beginning to tighten both the bank's stance and the ultra-loose
financing conditions it has maintained for the past nine years.
Euro zone government bond yields gave up earlier increases
and headed lower after Draghi's comments.
Germany's benchmark 10-year Bund yield fell more than 2
basis points to a two-day low at 0.325 percent,
while money market rates fell as investors scaled back ECB
The eurozone STOXX 50 pared back earlier gains
and Italy's FTSE MIB hit a session low while Eurozone
banks hit a day's low, last down 1.2 percent.
The euro fell 0.3 percent on the day to a low of $1.0857
"The Q&A revealed that ... some of the members hadn't turned
at all whereas I felt Draghi had shifted a little bit to be less
dovish," said Neil Jones, head of FX sales at Mizuho.
"I didn't sense that was unanimous," he added, saying
Draghi's comment on the easing bias had added to pressure on
(Writing by Patrick Graham)