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14 Apr 2015
Core yields trending lower in the euro area – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank remarked the downward trend from the core yields in the euro zone debt markets.
Key Quotes
“In EUR space the downward pressure on core yields prevails and with excess liquidity on the rise we could test new lows over the coming days”.
“If today’s MRO is unchanged excess liquidity will rise to around EUR270bn this week”.
“In the primary market the Netherlands is tapping EUR2-3bn in the Jan-20 today. The 5Y point in NETHER is approaching -10bp, possibly driven by the 2Y dropping below -20bp which means increased ECB buying in longer maturities”.
“The German ‘disease’ of shrinking PSPP eligible bonds is spreading”.
Key Quotes
“In EUR space the downward pressure on core yields prevails and with excess liquidity on the rise we could test new lows over the coming days”.
“If today’s MRO is unchanged excess liquidity will rise to around EUR270bn this week”.
“In the primary market the Netherlands is tapping EUR2-3bn in the Jan-20 today. The 5Y point in NETHER is approaching -10bp, possibly driven by the 2Y dropping below -20bp which means increased ECB buying in longer maturities”.
“The German ‘disease’ of shrinking PSPP eligible bonds is spreading”.