Bond yields up on data

| September 6, 2006 | 0 Comments

Yields were up on US Treasury bonds on Wednesday as investors worried that the US Federal Reserve could raise interest rates again. The fears came on data from the US Labor Department showing that labor unit costs were up in the second quarter. At late morning in New York, yields on two-year bond were up 3.7 basis points to 4.841 percent, while ten-year yields were at 4.823 percent, a gain of 3.8 basis points.

In the Eurozone, comments from an official of the European Central Bank as well as new data showing factory orders in German up more than had been expected sent yields up. Late in the session, the two-year Schatz had added 3.3 basis points to a yield of 3.616 percent, while the ten-year Bund was 3.2 basis points higher to 3.829 percent.

Data showed manufacturing output up in the UK for the third month in a row, sending gilt yields higher there. The two-year gilt was up 2.1 basis points to 4.881 percent. The ten-year gilt added 2.3 basis points to 4.752 percent.

In Japan, meanwhile, the ten-year government bond held steady at 1.714 percent ahead of comments by the governor of the Bank of Japan, expected at the end of its current meeting.


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