European high-yield credit default swap costs are dropping, key central bank decision imminent.

Before the announcement of key interest rate decisions this week, the cost of providing default guarantees for high-yield euro credit bonds has decreased. The Bank of England is expected to cut interest rates, while the European Central Bank is expected to keep rates unchanged. Kyle Rodda from Capital.com stated in a report that the prospect of rate cuts and potential asset price increases are boosting investor confidence. Data from S&P Global Market Intelligence shows that the iTraxx Europe Crossover index tracking high-yield euro credit default swaps has dropped by 1 basis point to 249 basis points.