Market snapshot: Government bond yields touch fresh lows across the Eurozone

Speaking at the Jackson Hole Economic Policy Symposium on Friday 22nd August, ECB President Mario Draghi suggested that the ECB Governing Council may respond to continued low inflation in the Eurozone by easing monetary policy, saying “we stand ready to adjust our policy stance further”. 

This echoes similar comments made in June, when Draghi said, “A broad-based asset purchase programme is certainly part of our possible options.” 

The next ECB Governing Council meeting is scheduled for September 4th. 

Tradeweb data shows that sovereign bond bid-yields across the Eurozone touched fresh lows today. This was the case for German, French, Italian, Spanish, Irish, Dutch, Austrian and Belgian 10-year benchmark bonds. 

• Bid-yields on the German 10-year bond touched 0.897% at 14:50 (BST), before rising to 0.911% at 4:16pm. 
• Bid-yields on the French 10-year bond fell to 1.231% at 14:50 (BST), before rising to 1.248% at 4:16pm. 
• Bid-yields on the Spanish 10-year bond hit 2.088% at 11:16 (BST), before rising to 2.142% at 4:16pm. 
• Bid-yields on the Italian 10-year bond dropped to 2.346% at 14:16 (BST), before rising to 2.380% at 4:16pm. 

Bid-yields on the German 10-year bond since 27th August 2013

Bid-yields on the Spanish 10-year bond since 27th August 2013: