22 Jan 2015
German bond yield rise on pre-ECB profit taking
FXStreet (Mumbai) - The bond yields in Germany rose for the second-consecutive session today as reports of European Central Bank’s (ECB) proposed size of bond purchases triggered profit booking in the bonds.
The German 10-year yield rose 4.2 basis points to 0.561%, extending the gains from the previous session’s close at 0.526%. Moreover, the benchmark yield in Germany and other nations in the Eurozone hit record lows in anticipation of a big sovereign QE program. The 10-yr yield in Germany hit a record low of 0.402 on Jan. 15th. However, reports came out yesterday that the ECB has proposed a EUR 50 billion per month QE program, which it intends to being from March, thereby contradicting expectations of the immediate implementation of the QE program. Thus, bond prices witnessed correction, sending yields higher.
German 10-yr yield Technical Levels
The immediate resistance is seen at 0.566%, above which gains could be extended to 0.601%. Meanwhile, support is seen at 0.527% and 0.493%.
The German 10-year yield rose 4.2 basis points to 0.561%, extending the gains from the previous session’s close at 0.526%. Moreover, the benchmark yield in Germany and other nations in the Eurozone hit record lows in anticipation of a big sovereign QE program. The 10-yr yield in Germany hit a record low of 0.402 on Jan. 15th. However, reports came out yesterday that the ECB has proposed a EUR 50 billion per month QE program, which it intends to being from March, thereby contradicting expectations of the immediate implementation of the QE program. Thus, bond prices witnessed correction, sending yields higher.
German 10-yr yield Technical Levels
The immediate resistance is seen at 0.566%, above which gains could be extended to 0.601%. Meanwhile, support is seen at 0.527% and 0.493%.