After Selloff, Bond Investors Await Inflation Data for ECB Clues
- Consumer prices rose 0.2% in August from year ago: survey
- German 10-year yield rises above zero first time since July
A rower paddles on the River Main as the skyscraper headquarters of the European Central Bank (ECB) stands beyond as the sun rises in Frankfurt, on Sept. 8.
Photographer: Jasper Juinen/BloombergEuropean government bonds have scope to recoup some of their losses next week, with inflation data forecast to confirm that the central bank’s monetary stimulus has yet to translate into the real economy.
German 10-year bunds fell for a second week, pushing yields above zero for the first time since July, after ECB President Mario Draghi Thursday signaled no expansion to the central bank’s asset-purchase program, or quantitative easing. That sparked a selloff across the region’s government-debt market, where yields on $3.3 trillion of securities that comprise the Bloomberg Eurozone Sovereign Bond Index are currently negative. That’s more than 50 percent of the total.