Yields up on Eurozone bonds

In the Eurozone on Wednesday, government bond yields were up after the news that even though the Ifo confidence survey in Germany was still very healthy, it had fallen a bit from its June reading. In addition, a sale of 30-year bonds in Germany generated less demand than had been anticipated, which triggered selling in other issues.

The two-year Schatz added 2.9 basis points to 3.556 percent, while the ten-year Bund saw yields go up by 1.4 basis points to 3.977 percent.

In the UK, a positive survey from the manufacturing sector sent gilt yields higher. The two-year gilt was 1.3 basis points higher to 4.762 percent and yields on the ten-year gilt were at 4.655 percent, a gain of 2.3 basis points.

In late morning trade in New York, yields on Treasury bonds were mixed ahead of a sale of $22 billion worth of two-year issues scheduled for later in the day. Yields on existing two-year Treasury notes were 0.8 basis points higher to 5.131 percent, while ten-year issues had dropped 0.6 basis points to 5.063 percent.

In Japan, meanwhile, yields were down on government bonds there after yet another member of the Bank of Japan’s monetary policy board made comments that underlined that the Bank will approach further interest rate hikes with caution. The ten-year Japanese government bond yielded 1.865 percent, a decline of 1.5 basis points.

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