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Euro zone bond yields fall as Fed seen more dovish than expected
Peripheral euro zone bond yields headed back towards historic lows on Thursday in a market-wide rally after the U.S. Federal Reserve struck a more dovish stance on monetary policy than some had expected. Longer-dated euro zone bonds sold off earlier this week after higher-than-expected U.S. consumer price inflation raised the possibility that the Fed might be open to raising interest rates sooner than many in the market had previously thought. But the Fed did not note any inflation concerns after its policy meeting on Wednesday, and affirmed its commitment to retaining accommodative monetary policy. Italian and ... (full story)