NEW! Investment Companies Centre

Bonds round-up: US economic data sparks revival

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: Tuesday 24 Jun 2008

LONDON (ShareCast) - US treasuries headed higher as the Federal Reserve policy makers meet to determine this month’s interest rate decision. The Fed will announce its decision tomorrow.

Demand was boosted by gloomy economic data, with the the Standard & Poor's/Case-Shiller national home price index showing its biggest monthly decline since records began in 2001, while the Conference Board’s index of consumer confidence slipped to 50.4, its lowest level since 1992.

The yield on the benchmark 10-year Treasury fell 3 basis points to 4.14%.

European government bonds were mixed in the wake of the US economic data, with short dated bonds advancing while medium dated bonds failed to completely wipe out earlier losses. The yield on the two-year bund fell 3 ticks to 4.53% while the benchmark 10-year bund’s yield dipped one basis point to 4.61%.

Gilts retreated despite further evidence that the UK housing market is in a bad way. Tougher lending criteria, higher food costs, rising fuel prices and soaring utility bills caused a slump in mortgage lending last month to the lowest level since records began more than a decade ago.

New mortgage approvals sank to less than 28,000 in May from 34,752 the month before, according to the British Bankers' Association (BBA).

The yield on the benchmark 10-year gilt rose 2 basis points to 5.15%.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).