Negative Empire State manufacturing index impacts bonds
News that the Empire State manufacturing index has fallen into negative territory for the first time in two years sent short-dated US Treasury bond prices up and yields down on Monday.
The May manufacturing index sat at -11.1.
Two-year Treasury bonds lost 1 basis point, lowering yields to 3.59 percent. Ten-year yields were also down by 1 basis point to 4.12 percent. Thirty-year bond yields were unchanged at 4.49 percent.
In the UK, yields on the 2-year gilt were up 2.4 basis points to 4.338 percent, while the 10-year gilt stayed steady at a yield of 4.366 percent.
The UK market was waiting for several reports Monday, including consumer prices data and information on the upcoming issue of a 50-year bond today, and retail sales figures due out on Thursday.
In addition, the central bank will meet on Tuesday.
In the eurozone, bond yields didn’t move much. The 10-year Bund was down 0.7 basis points to yield 3.305 percent, while the yield on the 2-year Schatz held steady at 2.24 percent.
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