Bonds round-up: Weak ahead of US auction

Date: Thursday 11 Mar 2010

US Treasury bonds are in decline ahead of the auction of $13bn of new bonds. The difference between the two-year and 30-year yields is one of the largest ever.

Two-year yields are four basis points higher at 0.94%, while ten-year yields are less than three basis points higher at 3.75%. The difference between the two-year and 30-year yield, currently 4.7%, is 3.76%.

Initial claims for unemployment insurance fell to 462,000 in latest week, according to the Labor Department. That was in line with expectations.

Elsewhere on the economic front, the trade deficit shrank a seasonally adjusted 6.6% in January to $37.29bn.

UK gilts are falling back with the sharpest declines at the longer end. Two-year yields are three basis points higher at 1.26% and ten-year yields are seven basis points ahead at 4.14%.

Inflation expectations among the UK public edged up only slightly in the three months to February despite a large spike upwards in the actual data in January.

The Bank of England’s latest quarterly survey of the public’s expectations for inflation showed a rise to 2.5% in February, up from 2.4% in the three months to November.

German bunds are also falling in price. Two-year yields are nearly four basis points higher at 1.05%, while ten-year yields are three basis points higher at 3.18%.

« 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