Bonds: Yields move lower as IMF, Riksbank, ECB make cautious noises

Sovereign bond yields moved lower across the board after the European Central Bank - according to many analysts - set a very low bar for additional monetary stimulus following its latest policy meeting.

Earlier in the session, Sweden´s central bank issued a similarly worded policy statement as it too opted to keep its benchmark interest rate unmoved.

To take note, the initial move in the Swedisk krona in its cross versus the greenback was a large appreciation, although by the end it was changing hands at 8.4219, just slightly stronger on the day.

The yield on the benchmark 10-year German bond fell by six basis points to 0.72%.

In parallel, the yield on similarly-dated Gilts ended two basis points lower at 1.90%.

Acting as a backdrop, overnight on Thursday the International Monetary Fund warned policymakers from the G-20 group of the world´s leading economies not to move too quickly to tighten monetary policy.

Spanish 10-year bond yields lost four basis points to 1.90%.