Riskier Assets Climb on Dovish Commentary from Yellen

European core yields continued to decline weighing on the Euro and as stock markets moved higher following dovish comments from Yellen on Wednesday which is still underpinning investor confidence. Bunds are now outperforming, helped by technical moves after the previous 10-year benchmark yield fell below 0.50%. The 10-year Bund yield is down -2.0 basis points at 0.55%, and the Gilt yield down -1.7 basis points at 1.24%. A weaker than expected U.K. RICS house price balance and tame final June inflation data from Germany, France and Spain underpinned bond futures, but the risk is not only that Yellen could tone down her dovish remarks at today’s testimony, but that with central banks continuing to eye exit steps, yields are bound to rise in the medium term.

Continue reading: https://www.iforex.com/news/riskier-assets-climb-dovish-commentary-yellen-38619

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