Bonds round-up: US Treasury buying eases ahead of Greek cuts

Date: Tuesday 02 Mar 2010

US Treasury bonds are slightly lower on today ahead of expected Greek budget cuts tomorrow.

Two-year yields are one basis point higher at 0.8% and ten-year yields are nearly three basis points higher at 3.63%.

EU Monetary Affairs Commissioner Olli Rehn yesterday said new measures must be announced “in the coming days” by Greece to ease the concerns over how serious it is about tackling its debt.

Greece may announce additional cuts of nearly €5bn after pressure from the EU but Greeks may not be happy about that.

The European Union intends to investigate trades in sovereign credit default swaps. This has been prompted by the Greek debt crisis. CD swaps pay up if the relevant country defaults on its debt.

Activity in the UK construction sector was lower than anticipated in February, according to figures released by the Chartered Institute of Purchasing & Supply and Markit Economics.

The Purchasing Managers Index for the construction sector in February came in below expectations of 48.9 at 48.5 (seasonally adjusted), and was also down from January’s figure of 48.6. A reading below 50 indicates a contraction.

UK gilts are rising in price. Two-year yields are one basis point lower at 1%, while ten-year yields are nearly six basis points weaker at 4.02%.

German bunds are falling in price with two-year yields broadly similar at 0.95% and ten-year yields one and a half basis points higher at 3.12%.

« Go back to news channel

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE