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LONDON, March 29 (Reuters) - The euro, the bloc’s government bond yields and banking stocks fell on Wednesday after sources told Reuters that European Central Bank policymakers are wary of making any new change to their policy message in April.
Small tweaks at the ECB’s meeting earlier this month appear to have upset investors and raised the spectre of a surge in borrowing costs for the bloc’s indebted periphery.
The euro sank to a week’s low against the dollar on the report, down 0.7 percent to $1.0743. It also hit its lowest in a month at 119.05 yen.
Europe’s government bond yields fell broadly, with benchmark German 10-year yields at a three-week low of 0.34 percent, down 4 basis points on the day.
Euro zone banking stocks hit a session low, down 0.8 percent, on reduced expectations of higher interest rates which boost banks’ margins. (Reporting by London markets team; Writing by John Geddie; Editing by Dhara Ranasinghe)