{"id":12681,"date":"2016-09-29T11:30:34","date_gmt":"2016-09-29T11:30:34","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=12681"},"modified":"2016-09-29T11:33:34","modified_gmt":"2016-09-29T11:33:34","slug":"german-bonds-fall-first-time-in-4-days-after-opec-oil-output-cut","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/german-bonds-fall-first-time-in-4-days-after-opec-oil-output-cut.html","title":{"rendered":"German Bonds Fall First Time in 4 Days After OPEC Oil Output Cut"},"content":{"rendered":"

German Bonds Fall First Time in 4 Days After OPEC Oil Output Cut<\/span><\/strong><\/span><\/h2>\n

German Bonds Fall First Time in 4 Days After OPEC Oil Output Cut<\/strong> : German 10-year bonds declined for the first time in four days amid speculation that OPEC\u2019s decision to cut crude production will help policy makers in their push to drive up consumer prices.<\/span><\/p>\n

Benchmark 10-year bund yields rose from near an 11-week low after the Organization of Petroleum Exporting Countries surprisingly agreed at a meeting in Algiers Wednesday to reduce production for the first time since 2008. That decision triggered oil\u2019s biggest jump in five months.<\/span><\/p>\n

\"Bunds
\nThe European Central Bank\u2019s extraordinary stimulus has failed to boost annual consumer-price growth toward its goal of just under 2 percent, fueling speculation that officials will extend their asset-purchase program beyond the scheduled expiry date in March.<\/span><\/p>\n

OPEC\u2019s decision \u201cgives you a one-day boost but there\u2019s plenty of questions about what sort of sustainability is going on in global inflation and what\u2019s really changed,\u201d said Richard Kelly, head of global strategy at Toronto Dominion Bank in London. \u201cNo one was expecting much of anything out of yesterday, so you have a bit of a reprice. Nothing long term changed in any of this.\u201d<\/span><\/p>\n

German 10-year bond yields rose three basis points, or 0.03 percentage point, to minus 0.12 percent as of 10:28 a.m. London time. The zero percent security due in August 2026 fell 0.281, or 2.81 euros per 1,000-euro ($1,122) face amount, to 101.164. The yield dropped to minus 0.16 percent on Tuesday, the lowest since July 12.<\/span><\/p>\n

German Inflation<\/span><\/p>\n

Data from Germany due Thursday are forecast by economists to show the country\u2019s annual inflation rate increased last month to the highest since May 2015, even though it will still be just a quarter of the ECB\u2019s goal for the 19-nation currency bloc.<\/span><\/p>\n

The five-year, five-year forward inflation swap rate, a rolling gauge of inflation expectations in the euro region, was little changed at 1.325 percent, the lowest since Sept. 19, based on closing prices. That\u2019s still within 10 basis points higher of its record low reached on July 11, signaling the challenges the ECB still faces in meeting its inflation goal.<\/span><\/p>\n

\u201cWe are in a situation where markets either don\u2019t attach too much credibility to OPEC announcements, or they know that any action will be neutralized to a certain extent\u201d by other producers, including the shale oil industry in the U.S., said Marius Daheim, a senior rates strategist at SEB AB in Frankfurt. \u201cWe are probably going to test the July all-time low for the 10-year bund before yields start going back toward zero.\u201d<\/span><\/p>\n

Source : http:\/\/www.bloomberg.com\/news\/articles\/2016-09-29\/german-bonds-fall-first-time-in-4-days-after-opec-oil-output-cut<\/span><\/p>\n

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