By Dhara Ranasinghe
LONDON, Sept 30 (Reuters) – Germany’s 10-year bond yield touched its lowest level in almost two months on Wednesday, after an acrimonious first U.S. presidential debate made investors cautious globally and underpinned demand for safe-haven assets.
Comments from a number of European Central Bank officials including President Christine Lagarde, and inflation data from Italy and France also supported regional debt markets.
Lagarde set the scene for changing the ECB’s strategy to align it with that of the Federal Reserve, possibly including a commitment to let inflation overshoot after it has been low for too long.
In her first update on the ECB’s ongoing review of its strategy, Lagarde also opened the door to giving the central bank less time to achieve its elusive near-2% inflation goal.
“In our view she is making a very clear case for a symmetric goal of 2%,” said