September 24, 2018 / 1:23 PM / 2 months ago

Euro, bond yields rise after Draghi comment "vigorous inflation"

LONDON, Sept 24 (Reuters) - Euro zone bond yields rose on Monday, with Germany’s 10-year Bund yield hitting its highest since mid-June, with analysts citing European Central Bank President Mario Draghi’s comments on wage growth and vigorous inflation.

Germany’s 10-year yield rose to 0.51 percent, up more than 5 basis points on the day. Italian bond yields also extended their rise from earlier in the day, with 10-year yields hitting 2.92 percent, its highest level in over two-weeks. .

“The buzz word for markets is that the pick up in wage growth will continue and this may have been the main driver behind the sell off in bond markets,” said DZ Bank strategist Daniel Lenz.

The euro rose 0.4 pct and surpassed $1.18, hitting its highest level versus the dollar since June 14.

Euro zone stocks ticked lower after the remarks to trade 0.4 percent lower on the day, while rate-sensitive banks turned higher but remained in negative territory, down 0.4 percent. (Reporting by Virginia Furness, Dhara Ranasinghe, Danilo Masoni and Tom Finn; editing by Sujata Rao)

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