Bonds: US data pushes up treasuries yield

Date: Tuesday 01 May 2012

These were the yields and movements on some of the most watched 10 year bonds just before midday in New York:

Spain: 5.77% (flat)
Italy: 5.54% (+3bp)
France: 2.97% (+1bp)
Germany: 1.66% (flat)
UK: 2.10% (-1bp)
US: 1.95% (+3bp)

The public holiday across most Eurozone countries produced a relatively quiet day for under-pressure euro area debt.

In the US, some strong news on manufacturing actually led to a sell off of US bonds.

The closely watched Institute for Supply Management’s factory index climbed to 54.8 in April from 53.4 in March - anything above 50 implies growth.

For the bond market, the ISM data suggests the US recovery is still on track, which in turn reduces demand for ultra safe US securities.

We will have to wait until tomorrow to see whether this positive momentum continues into European markets.

BS

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