German, UK bonds drop before Draghi's speech

Monday, 17. June 2019 14:34

Investors turned to cash on Monday, repositioning ahead of this week's monetary policy decisions and macroeconomic reports from the United States Federal Reserve and the Bank of England as well as important inflation reports for the Eurozone and the United Kingdom. German and British sovereign bonds, which are normally bought in times of market turbulence, fell and took yields higher even though the modest rise in stocks mostly faded and precious metals, also conventional safe havens, mostly traded lower.

Today's schedule is thin but all eyes are on the European Central Bank's conference in Sintra, Portugal, where outgoing President Mario Draghi is scheduled to speak today and tomorrow and expected to lay out any changes in strategy or forecasts for the economy. The euro rose slightly.

Germany's two-year note yield added one basis point at 2:30 pm CET to reach a negative 0.686%. The benchmark ten-year Bund rate grew 1.3 points to 0.238% below zero. The yield on the 30-year bond jumped 2.4 points to 0.345%. Corresponding futures declined 0.01%, 0.13% and 0.42%, respectively. Yields on the UK's securities maturing in two, ten and thirty years advanced slightly to 0.691%, 0.851% and 1.444%, respectively.

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