Euro zone government bond yields nudged down on Friday, as central bank comments that the economic outlook remains unclear even with hopes for a coronavirus vaccine comforted debt markets that more monetary policy stimulus is on its way. The heads of the Federal Reserve and the European Central Bank on Thursday welcomed the encouraging results in trials of a vaccine candidate for the novel coronavirus but stressed that the economic outlook will remain uncertain. "They all shared similar concerns that a potential Covid-19 vaccine would not end the economic challenges of the pandemic," said Deutsche Bank strategist Jim Reid. With the euro zone likely heading back into recession this quarter, the ECB has already said it would provide more stimulus in December. Bond yields across the euro area nudged lower, with Italian 10-year debt yields a touch lower on the day at 0.64pc , keeping record lows hit around 0.57pc in sight.

Source: Irish Independent November 13, 2020 08:15 UTC