November 17 (Reuters) – Long-term yields in the euro zone fell to their lowest levels in two months on Friday on the back of the recent release of economic data which supports the prospect of an end to the rise in major rates central banks in the fight against inflation.
Money markets are now counting on a rate cut of 100 basis points from the European Central Bank (ECB) by the end of 2024.
The yield on the ten-year German Bund, the benchmark for the entire euro zone, fell by almost six basis points, to 2.53%, the lowest since September, while the two-year yield dropped more than four points, at 2.911%, returning to its level at the beginning of June.
The trend is the same for US Treasury bond yields, which fell to a two-month low on Thursday after weekly unemployment claims in the United States rose more sharply than expected.
This indicator reinforced the conviction that the American Federal Reserve (Fed) should no longer raise its interest rates.
Ten-year and two-year Treasurie rates lost more than five basis points and more than three points respectively on Friday, to 4.3946% and 4.8154%. (Report by Stefano Rebaudo, French version by Claude Chendjou, edited by Blandine Hénault)
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