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GLOBAL MARKETS-Dollar gains, euro, U.S. bond yields drop after ECB meeting

Published 27/10/2017, 02:42 am
© Reuters.  GLOBAL MARKETS-Dollar gains, euro, U.S. bond yields drop after ECB meeting
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* Euro down versus the dollar after ECB meeting

* U.S. Treasury yields inch lower (Updates to U.S. trading, changes byline and dateline; previous LONDON)

By Stephanie Kelly

NEW YORK, Oct 26 (Reuters) - The euro dropped against the U.S. dollar, while U.S. Treasury yields slipped on Thursday in choppy trading, after the European Central Bank said it would continue its bond-buying scheme until at least September 2018 at a reduced pace.

The ECB said it would cut its bond purchases in half to 30 billion euros a month from January, but hedged its bets by extending asset buys by nine months given continuously low inflation. Treasury yields slipped, in line with the euro zone bond market, after the ECB decision. yields are following global yields lower, fairly sharply as well," said Gennadiy Goldberg, interest rates strategist at TD Securities in New York.

"The risk of the ECB being a little more hawkish has led to the rise in yields for the last week or so. So this is a little bit of a spillover effect," Goldberg added.

Benchmark 10-year U.S. Treasury notes US10YT=RR last rose 1/32 in price to yield 2.4427 percent, from 2.444 percent late on Wednesday.

The 30-year bond US30YT=RR last fell 3/32 in price to yield 2.9591 percent, from 2.955 percent late on Wednesday

Gold dipped as the dollar gained against the euro after the ECB decision to trim bond purchases and as it hedged that move by also extending the lifespan of its bond-buying program.

Spot gold XAU= dropped 0.3 percent to $1,273.50 an ounce. DROPS

The dollar index .DXY rose 0.7 percent, with the euro EUR= down 0.95 percent to $1.17 after the ECB decision spurred sales of the single currency. gauge of stocks across the globe .MIWD00000PUS gained 0.13 percent, with equity markets broadly mixed.

The pan-European FTSEurofirst 300 index .FTEU3 rose 0.94 percent, while Japan's Nikkei .N225 rose 0.15 percent.

On Wall Street, the Dow Industrials index rose on gains across sectors, but losses in Celgene CELG.O held back the two other major indexes in one of the busiest days of third-quarter earnings.

The Dow Jones Industrial Average .DJI last rose 117.47 points, or 0.5 percent, to 23,446.93, the S&P 500 .SPX gained 8.23 points, or 0.32 percent, to 2,565.38 and the Nasdaq Composite .IXIC added 14.86 points, or 0.23 percent, to 6,578.76.

Celgene shares dropped 16.0 percent after the biopharmaceutical company reported disappointing sales for its psoriasis treatment drug Otezla. slipped, pressured by an unexpected increase in U.S. crude inventories, high U.S. production and exports, but stayed near multi-month highs on support from tighter crude markets. crude CLcv1 fell 0.02 percent to $52.17 per barrel and Brent LCOcv1 was last at $58.31, down 0.22 percent on the day.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Global assets in 2017

http://reut.rs/1WAiOSC Global currencies vs. dollar

http://tmsnrt.rs/2egbfVh Global bonds dashboard

http://tmsnrt.rs/2fPTds0 Emerging markets in 2017

http://tmsnrt.rs/2ihRugV

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