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Euro, peripheral bond yields slip as ECB keeps easing in place
March 9, 2017 / 1:06 PM / 8 months ago

Euro, peripheral bond yields slip as ECB keeps easing in place

LONDON, March 9 (Reuters) - 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 central bank.

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)

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