LONDON (Reuters) - The euro and bond yields rose on Thursday after minutes from the ECB’s December meeting said the central bank should revisit its communication stance in early 2018 and gradually adjust its language to reflect improved growth prospects.
A change in the ECB’s policy message would likely be taken by investors as a sign that rate-setters are getting ready to wind down their 2.55 trillion euros bond-buying program, the key plank of their stimulus policy for the past three years. [nF9N1M8020]
The euro rose after the minutes, hitting a six-day high against the pound EURGBP=D3 of 88.93 pence per euro with a 0.5 percent rise. Against the U.S. dollar the euro EUR= was up 0.3 percent at $1.987 after trading flat before the minutes.
Euro zone bond yields rose, trimming earlier rises. Germany’s 10-year Bund yield rose just over 1 basis point to 0.49 percent DE10YT=TWEB, giving up earlier rises.
Europe’s pan-European STOXX 600 equity index gave up gains after the release of the minutes, and was last trading 0.1 percent lower.
Reporting by the London Markets Team; Editing by Fanny Potkin