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Euro zone bond yields little changed as ECB euro strength concerns linger
['Sophie Kiderlin']
Zawya.com - All Regional News
Euro zone bond yields were little changed on Thursday as concerns persisted over the strength of the euro and whether it might prompt the European Central Bank to ease policy, while the U.S. Federal Reserve kept rates on hold.
Shorter-dated euro zone yields had retreated on Wednesday, with the German two-year slipping to its lowest level in a week.
As the euro zone is a net energy importer, even modest currency gains can reduce the cost of energy and other imports, potentially lowering inflation.
ECB policymaker Martin Kochertold the Financial Times that further euro appreciation could force the central bank to cut rates.
He added that rising oil prices were offsetting the euro’s strength.