Stable euro zone bonds; Investors who are aware of US policy outlook

The results of the euro zone government bonds remain stable on Monday, after posting the largest weekly decline in two months, in contrast to the decline in US results after a bleak job report triggered a bet on the Federal Reserve cutting in September.

The US monthly work data on Friday showed a far less work than expected in July and the numbers of May and June drastically revised downward, encouraging a quick re -assessment of the opportunity to slaughter interest rates September and for President Donald Trump to fire the leading department of the Department of Manpower.

The results on the 10-year Bund Germany (De10yt = RR) benchmark rose around 1 basis points in the initial trading at 2.685%, after falling 3.9 bps last week, their biggest weekly decline since the end of May.

Premium Treasurys as Over Bunds, benchmarks for the wider Euro area bond market, held around 155.6 bps, close to the inputor since early April, because 10 years Treasury Note produced US10Y Skim three months the lowest was around 4.24%.

The money market shows the traders now expect two more interest rates from the Fed this year, with the next possibility in September, compared to no more cuts from the European Central Bank for now.

The two -year schatz (de2yt = rr) results were also flat on that day at 1,911%. Italian and French bonds weaken the touch, leaving BTP 10 years to produce IT10Y up 2.6 bps on that day at 3.559%, while OAT results 10 years (FR10YT = RR) rose 2.3 bps to 3.369%.
Source: Reuters