Bond prices rise at end of week

Prices for government bonds were up in the Eurozone, the US and the UK on Friday.

In the Eurozone, prices on bonds dropped early in the week as investors sold despite positive new data after officials of the European Central Bank made comments that indicated there are more interest rate hikes to come. Prices rose, however, on Friday as investors seemed to forget their concerns about interest rates. Still, even though yields on the ten-year Bund were 2.6 basis points lower to 3.783 percent, they were still higher than they were at the beginning of the week. In the UK, meanwhile, the ten-year gilt was 2.9 basis points lower to a yield of 4.536 percent on Friday.

At midday on Friday in New York, yields on the ten-year US Treasury bond were 2.8 basis points lower to 4.764 percent. Early in the week, prices were affected by new data on labor costs that raised the possibility that the Federal Reserve will raise interest rates again soon, but later on in the week buying increased due to what some called safe-haven buying as the anniversary of the 9/11 terrorist attacks approached.

In Japan, on the other hand, yields were up slightly as the ten-year government bond went from a yield of 1.663 percent on Monday to 1.735 percent Friday.

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