FT News Briefing The bright side of Bund yields
Jan 21, 2022
The Federal Reserve sparks debate on a central bank digital currency, raising eyebrows in the finance world. Luckin Coffee plots a comeback in the US after a major fraud scandal, showcasing resiliency in consumer behavior. Meanwhile, German Bund yields rise above zero for the first time since 2019, influencing market dynamics and central bank strategies. The intertwining of these financial developments highlights the evolving landscape of global economics and cryptocurrency regulations.
AI Snips
Chapters
Transcript
Episode notes
Bund Yields Significance
- German Bund yields, a key benchmark, have been below zero for a long time.
- This meant guaranteed nominal losses if held to maturity, yet investors still bought them for reliability.
Bund Yield Drivers
- The rise in Bund yields is linked to market expectations around Federal Reserve aggressiveness due to inflation.
- This has affected treasury yields and even crypto and tech stock performance.
ECB Policy Influence
- Rising Bund yields could force the European Central Bank to act earlier than planned.
- The ECB is closely monitoring the relationship between Bund yields and other Eurozone bonds.