HALISTER1: EGB Yields, Euro May Rise as ECB Not Overly Worried: Nordea

EGB Yields, Euro May Rise as ECB Not Overly Worried: Nordea

(Bloomberg) -- The move higher in EUR rates may have further to go as Draghi’s comments today are insufficient to challenge the course of markets, Nordea analysts Holger Sandte, Jan von Gerich and Tuuli Koivu write in client note.
  • Near term, the direction of the markets will be determined by developments of the general risk appetite and the commodity markets
  • Beyond the very short term, longer German yields will remain extremely low and fall back a bit, but don’t expect the 10Y yield to breach zero
  • Draghi didn’t really include much to weaken the EUR, implying the ECB is not yet overly worried about the currency moves
    • See more upside for the EUR/USD
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

People
Holger Sandte (Nordea Bank AB)
Jan Von Gerich (Nordea Bank AB)

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