FXStreet (Mumbai) – The benchmark 10-yr US-German bond yield spread improved to 146 bps ahead of the European Central Bank meeting due today.
Yield spread advanced
The spread advanced from 143 bps seen on Wednesday. Moreover, the German yields dropped to two-week lows last week as markets speculated that the ECB would hint at an extension/expansion of its QE program and/or rate cut.
However, German yields rallied on Tuesday, pushing the spread lower to 143 bps. However, expectations of more are on the rise again today, which pushed the spread higher to 146 bps.
(Market News Provided by FXstreet)