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Bonds round-up: Shares rally hurts bonds

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Date: Thursday 17 Jul 2008

LONDON (ShareCast) - Bonds retreated across the markets today as renewed confidence in the banking sector following JP Morgan Chase’s better-than-expected results sent shares surging.

In the US, bonds were also sent lower by data from the Commerce Department that showed housing starts increased 9.1% between May and June. The yield on a ten-year treasury rose by a basis point to 3.95%.

The yield on Germany’s benchmark bund climbed by four basis points to 4.44%. European Central Bank council member Nout Wellink was quoted in an interview that slowing economic growth won't necessarily restrain inflation, sparking concern that the ECB may be contemplating further rate rises.

In the UK, where banks led a resurgence in the FTSE 100, ten year gilt yields also climbed by a basis point, to 4.88%.

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