|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |   
Thursday 16th of August 2007

FM Main:

FM News:

FM Features:

FairInvestment:

July 18, 2005

Prices on government bonds down in US, up in eurozone and UK

Permalink: Prices on government bonds down in US, up in eurozone and UK
by Brian Turner

Prices on government bonds down in US, up in eurozone and UK

Prices on government bonds were down in the United States on Monday but were up in the eurozone and the UK, while the markets in Japan were closed for a national holiday.

In the eurozone, news of controlled inflation sent bond prices up and added to the likelihood that the European Central Bank will leave eurozone interest rates at their current level for the time being.

Yields on the 10-year Bund were down 3.3 basis points to 3.254 percent, while the 2-year Schatz lost 0.7 basis points to yield 2.203 percent.

In the UK, gilts followed eurozone prices up as investors waited for the scheduled release on Wednesday of the minutes of this month’s Bank of England monetary policy committee meeting.

Sentiment remains that UK interest rates are likely to be lowered in August.

In the US, yields on 2-year Treasury bonds gained 0.8 basis points to a yield of 3.876 percent, while 30-year yields were up 1.8 basis points to 4.412 percent as trade was slow while investors wait to hear what Federal Reserve Chairman Alan Greenspan has to say to Congress later in the week.

Yields rose on news that implies stronger growth in the US economy than had been expected, increasing the chances that interest rates will continue for the time being.



Email This Post Email This Post Print This Post Print This Post

Add to Bookmarks:

ADD TO NETSCAPE     ADD TO DEL.ICIO.US     ADD TO DIGG     ADD TO FURL

ADD TO STUMBLEUPON     ADD TO YAHOO MYWEB     ADD TO GOOGLE     ADD TO SPURL

No Comments

No comments yet.

Sorry, the comment form is closed at this time.


Previous: « Oil futures lose out as high prices cut supplies
Next: Gordon Brown changes length of economic cycle »

Visited 64 times, 1 so far today