Euro bounces as falling French bond yields temper debt concerns
FXE•The euro rose 0.28% to $1.1252 as France’s 10-year bond yield fell 8 basis points to 4.7824%. The dollar index slipped 0.26% to 101.89.
1. Euro rebounds
The euro climbed 0.28% to $1.1252 on Tuesday, on pace for its strongest daily gain since September 3, after hitting a 17-month low the previous day. A pullback in French government bond yields eased concerns about strain in euro zone debt markets.
2. French yields fall
France’s 10-year bond yield dropped 8 basis points to 4.7824%, with lower energy prices helping French bonds rally. Crude prices fell as rising Middle Eastern exports and a G7 emergency stockpile release eased supply concerns. Marc Chandler of Bannockburn Capital Markets said lower oil prices had helped bring down yields in France and Italy, giving the euro a bounce.
3. Currencies and rates
The dollar index fell 0.26% to 101.89, while sterling rose 0.39% to $1.327. The dollar gained 0.05% against the yen to 157.98. The Bank of Japan may signal this month that underlying inflation has roughly reached its 2% target, and Governor Kazuo Ueda said anchoring inflation around that level was becoming more important.
