The income of government bonds in the eurozone fell on Thursday, led by German bonds against the backdrop of a market for the influence of the increase in financial expenses and monetary trends in the European Central Bank.
The profitability of German bonds has decreased over 10 years, a reference standard for bond income in the euro by two basic points to 2.54 percent, after it rose from 3 basic points at the previous session. According to Reuters, the yield of German bonds also fell by 30 years by 1.5 basic points up to 3.05 percent.
The markets are increasingly focused on the longest time, against the background of the expectations that the countries of the Eurozone led by Germany will turn to an increase in borrowing bets; To finance high defense costs. On Wednesday, NATO leaders agreed to increase protective costs to the equivalent of 5 percent of GDP, but some European countries that already suffer from high financial deficiency and escalation of debt levels may be difficult to achieve this goal.
For its part, Germany published, this week, a budget project for 2025, including record levels of investment aimed at stimulating economic growth, which increases expectations for increasing state borrowing at the next stage.
From the point of view of monetary policy, the return of German bonds has decreased within two years, which is more sensitive to changes in interest forecasts by 1.5 basic points up to 1.831 percent.
At the beginning of this month, the European Central Bank reduced the interest rate on deposits, but temporarily stopped stopping the fund to eliminate funds after it reduced the cost of borrowing 8 times a little more than a year.
It is expected that both the President of the Central Bank of Europe Luis de Gindos and the members of the Executive Council Isabelle Schenbel will endure two important words later on the same day, in the light of marketing markets for any links to the future path of monetary policy.
In Italy, the return of government bonds fell by 10 years by 2.5 basic points to 3484 percent; Which led to the subject of the gap between Italian income and its German analogue to 93 basic points, decreasing by one basic point.
