Sponsored by Digital Look Events

Bonds round-up: Little change

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Monday 14 Apr 2008

LONDON (ShareCast) - Government bond prices are little changed on both sides of the Atlantic today.

US treasuries reacted stoically to better than expected US retail sales data, which showed a 0.2% improvement in the index in March after declining 0.4% in February.

The yield on the benchmark 10-year treasury note is unchanged at 3.47%.

Prices of European government bonds held up despite further evidence of the European Central Bank’s reluctance to sanction a cut in interest rates until inflation is reined in.

ECB policy maker Yves Mersch said the central bank had lo leeway to cut interest rates, given that consumer price growth is likely to be ahead of the bank’s 2% target rate in 2009.

The yield on the German 10-year bund, Europe's benchmark government security, remained close to its lowest level this month, little changed at 3.91%.

In the UK, gilts eased slightly after producer prices inflation hit a 17-year high in March, thanks to surging oil prices and higher tobacco and alcohol duties.

The output price index for home sales of manufactured products rose by 6.2% in the year to March, with petroleum price rises accounting for 2.31% of this, the ONS said.

The yield on the 10-year gilt rose 1 basis point to 4.43%.