According to the ECB, wages pose a serious threat to the further reduction of inflation
Bond yields are moving lower today in the secondary market ahead of tomorrow’s European Central Bank board meeting.
The margin of the Greek 10 years bonds compared to the corresponding German ones, it is limited, with the result that it fluctuates marginally above the limit of 1%.
It is noted that the corresponding margin of Italian bonds is between 1.5% and 1.55%.
Investors are waiting for ECB President Christine Lagarde to signal her intentions on when interest rate cuts will begin.
Expectations as reflected in the money futures market indicate that the first move will take place in April.
However, several central bankers – members of the ECB Board of Directors – with their statements are pushing for the de-escalation of interest rates to start later in order to ensure the de-escalation of inflation.
According to the ECB, wages pose a serious threat to the further reduction of inflation. The ECB’s chief economist Philip Lane said this month that crucial wage data would not become fully available until the ECB’s meeting on June 6, thus implicitly but clearly timing the first interest rate cut at the start of the summer, he was quoted as saying in APE BEE.
In the Electronic Transaction System of the Bank of Greece (HDAT), transactions amounting to 53 million euros were recorded, of which 26 million euros related to purchase orders.
The benchmark 10-year bond yield fell to 3.34% versus 2.33% for the corresponding German bond, leaving the spread at 1.01%.
In the foreign exchange market, the euro is moving higher against the dollar today as the European currency traded at $1.0900 in the early afternoon from the level of $1.0844 that opened the market.
