- May 8, 2002
- Reaction score
Euro zone government bond yields edged lower on Thursday after falling sharply the day before as investors adjusted their bets on the monetary tightening path after surveys showed business activity declined far more than expected in August. Analysts have mixed views about the ECB's next moves, with some seeing the deposit facility rate peaking at 4% or above. BNY Mellon Financial Economist Sebastian Vismara said that the central bank raising its deposit rate to 4.25% "remains a possibility given the European Central Bank's renewed focus on unit labour costs."