Euro zone bond yields fall, tracking recovery in UK gilts

Euro zone bond yields rise after U.S. jobs data - Copyright Thomson Reuters 2022

By Reuters

Published on 29/09/2022 - 13:25 GMT+2

- Euro zone borrowing costs fell on Wednesday, reversing an earlier rise to multi-year highs, after a surge in British gilts helped boost sentiment across the fixed-income market.

Euro area bond yields have recently trailed UK gilts which showed in just four sessions the sharpest upward move since at least 1979, in response to new finance minister Kwasi Kwarteng's borrowing plans.

British government prices soared after the Bank of England announced it would intervene in the 2.1 trillion-pound gilt market that was starting to seize up.

Germany's 10-year government bond yield, the benchmark for the single currency bloc, fell 6.5 bps to 2.19%, and the 2-year yield dropped by 12.5 bps to 1.87%.

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Euro zone bond yields fall, tracking recovery in UK gilts

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