Bond prices across the eurozone are retreating today as the release of the PMI shows that the economy is on the verge of recession. It is indicative that the yield on the 10-year German bond has exceeded 2%. The PMI, which tracks economic activity, fell for the third consecutive month in September, dropping to its lowest level since 2013, excluding the pandemic period, with the recession showing signs of accelerating in manufacturing and services.
These developments are having a negative impact on the euro, which fell below the 0.98 level against the dollar.
In the HADAT, transactions amounting to EUR 50 million were recorded, of which EUR 26 million related to buy orders. The yield on the 10-year bond rose to 4.62% from 4.44% yesterday, compared to 2% for the corresponding German security, resulting in a spread of 2.62% from 2.48% closed yesterday. In the currency market, the dollar strengthened against the euro with the euro-zone currency trading at $0.9736 in the early afternoon from $0.98490 at the market open. The indicative value for the euro/dollar exchange rate announced by the ECB was set at $0.9754.
