Greenspan comments hits falling bond yields
Comments from US Federal Reserve chairman Alan Greenspan to a banking conference in Beijing about falling yields on long-term bonds as well as news of substantial projected job cuts by General Motors sent prices higher and yields lower on US Treasury bonds on Tuesday.
At mid-day in New York, 2-year bonds were down 1.2 basis points to yield 3.57 percent, 10-year bond yields fell 2.7 basis points to 3.929 percent, and 30-year yields were down 3.8 basis points to 4.208 percent.
Mr. Greenspan’s comments also had an effect on eurozone bonds, which fell to record low yields yet again.
The 2-year Schatz was down 5.2 basis points to a yield of 2.036 percent, a two-year low, while 10-year Bund yields fell to 3.15 percent, down from last week’s all-time low of 3.167 percent.
Yields also fell in the UK, where yields on the 2-year gilt fell 3.9 basis points to 4.280 percent and 10-year yields were down 4.4 basis points to 4.236 percent, mostly on the news that UK house prices fell for the second month in a row in May.
Yields on the 10-year Japanese government bond fell 1 basis point to 1.23 percent.