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Bond markets remaining calm

Following on from our blog on Monday, we take another look at the intra-day developments in the sovereign bond markets. So far, there appear to be no

Publishing date
30 June 2015
Authors
Thomas Walsh

Following on from our blog on Monday, we take another look at the intra-day developments in the sovereign bond markets. So far, there appear to be no signs of any major stress in the markets.

Source: Thomson Reuters Eikon, most recent data 17:00 CET (16:00 GMT)

Figure 1: The Hourly developments in sovereign yields (%)

bond_markets_1

RTEmagicC_bond_markets_2.png
RTEmagicC_bond_markets_3.png

Source: Thomson Reuters Eikon, most recent data 17:00 CET (16:00 GMT)

Figure 2: The change in yields since market closing on Friday 26/06/15

RTEmagicC_bond_markets_4.png

For those countries that did experience a small uptick in yields on Monday morning, we can see that yields are well on their way to reverting back to previous levels seen last week.

Figure 3: The Euro-Dollar Exchange rate (USD per EUR) and Volatility Index

bond_markets_5

Looking at markets more broadly, we can see that since Monday’s opening, volatility (as captured by the VSTOXX index) is up slightly from 26, peaking at about 32 and returning to around 30 at the time of writing and tending down recently.

The Euro quickly made up the losses incurred at market opening on Monday (29.06), however it has once again slid down against the dollar slightly.

 

About the authors

  • Thomas Walsh

    Thomas Walsh, a British citizen, worked as a Research Assistant at Bruegel in the area of macroeconomics from August 2014 to August 2015.

    He holds a Master’s degree in Economics from the Barcelona Graduate School of Economics with a thesis entitled “The Credit Channel of Monetary Policy at the Zero Lower Bound: A FAVAR Approach”.

    He also holds a Bachelor’s degree in Economics and Econometrics from the University of Bristol.

    Previously, Thomas worked at the European Central Bank as a Trainee in the Statistics Development and Coordination division, working primarily with the ECB’s SME access to finance survey, SAFE.

    He has also held positions as Research Assistant at the Social and Public Health Sciences Unit, University of Glasgow and as Intern at the Centre for Market and Public Organisation, University of Bristol.
    His research interests cover macroeconomics and finance, particularly monetary policy transmission and central bank decision making. Thomas speaks English, conversational Spanish, and basic German.

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