That will make disappointing reading for policymakers at the European Central Bank (ECB), who are expected to signal today a bias towards cutting its already-negative deposit rate this year to try to boost growth and inflation
LONDON: Speculation that the European Central Bank (ECB) will introduce an “operation twist” after it ends its asset-purchase plan is turning the French yield curve on its head.
The yield on France’s 30-year bonds dropped to its lowest level in 19 months on Tuesday, reducing the premium over five-year notes to the least since November 2016. A media report last week said that the ECB will reinvest proceeds from maturing bonds into longer-dated securities amid a shrinking pool of eligible debt.
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