The European bond prices declined on Tuesday as a rally in oil prices boosted European equity market sentiments. The benchmark German 10-year bonds yield, which is inversely proportional to bond price rose 4.17 pct to 0.176 pct, French 10-year bunds yield climbed 2.29 pct to 0.520 pct, Italian equivalents jumped 3.36 pct to 1.402 pct, Spanish 10-year bonds yield inched up 2.40 pct to 1.535 pct and Portuguese 10-year bonds yield climbed 1.21 pct to 3.185 pct, Netherlands 10-year bonds yield inched higher 3.15 pct to 0.393 pct by 0905 GMT.
The Eurozone bonds have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the European Central Bank’s target. Crude oil prices rose as Kuwait reported on Sunday that its crude production fell to 1.1 million barrel per day, from up 2.8 million barrel in March as workers went on stick. The International benchmark for crude oil prices, Brent futures rose 1.10 pct to $43.35, while West Texas Intermediate crude oil climbed 0.73 pct.
Lastly, the investors will now focus on the ECB governing council meeting on Thursday, which is expected to culminate in the decision to leave policy unchanged.
Meanwhile, the pan-European STOXX 600 index rose 1.25 pct and the euro-are blue-chip gauge, the STOXX 50, gained 1.31 pct. The FTSE 100 Index is up 0.53 pct, the DAX trading 1.90 pct higher and the CAC-40 rose 1.22 pct by 0905 GMT.
The material has been provided by InstaForex Company – www.instaforex.com