Bond prices rise on Fed interest rate decision
by Elaine Frei
Government bond prices were up and yields fell on Thursday in response to a decision by the US Federal Reserve to keep interest rates steady for the time being as well as its comments following the decision that did not sound too strong a warning on inflation. Also helping prices higher was new data on durable goods orders showing that, excluding transportation goods, orders were up just 0.1 percent in September. The ten-year US Treasury bond dropped 3.8 basis points to a yield of 4.73 percent.
In Europe, meanwhile, ten-year yields also fell in response to the Fed decision. The ten-year Bund dropped 1 basis point to 3.85 percent, while the ten-year gilt was 4 basis points lower to a yield of 4.66 percent. The price gains came as the president of the European Central Bank said that inflation would be an issue for the rest of this year and into next year.
In Japan, government bonds were helped by the US bond market, with the ten-year JGB falling 5 basis points to 1.750 percent. Shorter-dated bonds also saw prices go up and yields drop after an auction of two-year issues saw demand quadruple supply. Yields on two-year bonds were 0.3 basis points lower to 0.755 percent.
Discuss this in the Finance Markets forums
Story link: Bond prices rise on Fed interest rate decision
Add to Bookmarks:
Related financial stories to: Bond prices rise on Fed interest rate decision
- European bond markets await eurozone rate decision
- Bond yields up on interest rate expectations
- Interest rate worries send bond yields lower
- Bond yields fall on interest rate concerns
- UK bond prices fall despite low expectation of near interest rate hikes
- Bond yields up on expected interest rate hikes
- Bond yields up on interest rate concerns
- Bond prices rise at end of week
- Bond prices down on ECB rate comments
- Bond yields fall, prices rise
Previous: « British tobacco sector advances
Next: Euro strengthens on ECB comments »
Visited 338 times, 1 so far today