The cost of borrowing dollars between banks for 12 months rose above 1 percent for the first time this year as speculation mounted that the Federal Reserve will tighten monetary policy in the coming year.
German 10-year bond yields held near a record low as concern the euro-region’s debt crisis may spread boosted demand for the perceived safety of the 16-nation currency’s benchmark securities.
The rate banks say they pay for three-month loans in euros may rise today, according to Credit Agricole Corporate & Investment Bank.
German bonds fell for a second day as government debt sales by France and Spain diminished investors’ demand for the euro-region’s safest assets.
European Central Bank President Mario Draghi is contemplating taking interest rates into a twilight zone shunned by the Federal Reserve.
"There is a lack of impetus to sell developed markets because you're seeing disinflation in most of the major markets."
- Orlando Green on Dec 01, 2014