Yields fall on 10-year US treasury bonds

Yields fell on 10-year US Treasury bonds on Monday in quiet trade leading up to the end-of-summer Labor Day holiday in two weeks.

Yields on the 10-year bond had gone up in early-day trade by as much as 4 basis points to 4.357 percent, but by near the end of the session, yields had dropped to 0.4 basis points off of Friday’s close to a yield of 4.215 percent.

Yields were up, however, on the 2-year Treasury bond, climbing by 0.4 basis points to a yield of 4.022 percent ahead of an auction of new two-year paper set for Wednesday.

In the eurozone, prices were down and yields were up in anticipation of surveys of German confidence due to be released soon and expected to show small improvements in sentiment. The 2-year Schatz gained 0.6 basis points to yield 2.164 percent.

Yields on short-dated gilts in the UK were down on continuing uncertainty over whether or not the August interest rate cut by the Bank of England will be followed by more rate cuts. The 2-year gilt dropped 2.1 basis points to yield 4.147 percent.

In Japan, 10-year government bond yields were up a substantial 6 basis points to a yield of 1.470 percent on higher equities markets. A new auction of 20-year bonds was scheduled for Monday as existing 20-year bonds saw yields rise by 5.5 basis points to yield 2.150 percent.

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