Reuters exclusively reported that Germany’s finance agency has stepped in to ease a bond shortage that developed in the overnight lending market in a sign of stress, following the European Central Bank’s hawkish pivot and more recently the Ukraine-Russia crisis. A deepening scarcity of German government bonds, widely used as collateral against repo loans, had developed after the European Central Bank’s Feb. 3 meeting and the Ukraine crisis, sharply lifting the cost of borrowing them.
Business & FinanceDeals
Reuters exclusively reports German debt office acts to ease bond shortage after ECB, Ukraine crisis; market reacts
22 February 2022, 3:39 pm. 1 minute
A selloff in German bond markets accelerated following the report, sending yields on short-tenor bonds more than 10 basis points higher.
Topics of Interest: Business & FinanceDeals
Type: Reuters Best
Sectors: FX & Fixed Income
Win Types: Exclusivity
Story Types: Exclusive / Scoop
Media Types: Text
Customer Impact: Important Regional Story
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