AMSTERDAM, Dec 23 Reuters Mixed headlines around Brexit and UK trade and uncertainty around a COVID stimulus package in the U.S failed to move euro zone bonds on Wednesday in preholiday trading.
U.S. President Donald Trump threatened on Tuesday not to sign an 892 billion coronavirus relief bill, hopes for which have boosted risk assets in recent weeks, saying the amount in stimulus checks should be increased.
In Britain, France lifted its ban on freight coming into Britain, after many countries imposed travel restrictions on Britain on Monday on fears of a new, more infectious strain of the coronavirus.
And a report suggested a Brexit trade deal is possible on Wednesday, although a British minister said a deal has not yet been clinched and serious issues remain that prevent Britain from signing an accord.
Uncertainty around U.S. stimulus hit stock futures earlier, while the British pound was higher on the day, but euro zone bonds were unchanged in early Wednesday trade.
Benchmark German 10year bond yields remained unchanged in early trade at 0.60.
Southern European yields were 1 basis point lower on the day.
Similar headlines on Tuesday around Brexit and the pandemic had failed to move markets, said Piet Haines Christiansen, chief analyst at Danske Bank.
At this stage market participants are reluctant to take on new positions, so even in case of significant market movements, it should be seen in the light of low liquidity, he told clients.
Bond market activity…