LONDON, April 30 (Reuters) - Euro zone bank stocks extended their losses and the German Bund yields fell further to 1-1/2-month lows during the European Central Bank’s press conference on Thursday.
Banking shares, which were already down, dropped as much as 6.5% after Lagarde said the committee did not discuss buying junk bonds as part of its asset purchase programme.
Germany’s benchmark 10-year bond yields meanwhile declined to -0.559%, its lowest level since mid-March following dovish comments by ECB chief Christine Lagarde.
She said the bank would make full use of flexibility embedded in its various policy tools.
Italy’s 2-year bond yields, which have been in focus given short-term risks from the coronavirus crisis, erased some gains and were last down 7 bps to 0.56% after having fallen as much as 15 bps at the start of the conference. 10-year yields were last up 6 bps to 1.83%.
The euro fell slightly against the dollar as Lagarde spoke, from around $1.088 at 1300 GMT to a session low of $1.083 at 1317 GMT. It was last at $1.084, down 0.3% on the day.
Reporting by the London Markets Team, writing by Yoruk Bahceli; editing by