Eurozone bond yields jump after Credit Suisse’s US$54 billion lifeline

EUROZONE government bond yields rose sharply on Thursday (Mar 16) morning after beleaguered European lender Credit Suisse said it would borrow up to US$54 billion from the Swiss Central Bank to shore up liquidity.

Germany’s 2-year bond yield was last up 36 basis points (bps) at 2.737 per cent as investors sold government debt, which is seen as a safe haven at times of stress. Yields move inversely to prices.

The 2-year yield, which is highly sensitive to interest rate expectations, plunged 54 bps on Wednesday. The European Central Bank is due to set interest rates later on Thursday.

Germany’s 10-year bond yield rose 17 bps to 2.285 per cent. Italy’s 2-year bond yield was up 14 bps to 3.246 per cent. REUTERS