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Bonds round-up: US Treasuries await interest rate talks

Date: Monday 15 Mar 2010

Bonds round-up: US Treasuries await interest rate talks

US Treasury bonds are broadly unchanged at the shorter-dated end and falling in price at the longer-dated end as the market waits for policymakers to discuss US interest rates later this week.

Two-year yields are unchanged at 0.95%, while ten-year yields are two basis points higher at 3.72%.

Comments by Bank of England Monetary Policy Committee Kate Barker over the weekend put a dent in sterling’s value and it fell below $1.51.

“It is possible we will have a quarter when GDP falls, but I don’t think it will be a double dip. I would be surprised if we go back to recession but I think recovery will be bumpy and fragile”, Barker said in an interview with the Western Morning News.

UK gilts are rising in price with two-year yields one basis point lower at 1.21% and ten-year yields more than three basis points lower at 4.06%.

European Union leaders look set to propose a 'framework' to help Greece overcome its debt crisis.

Economic and Monetary Commissioner Olli Rehn told reporters that the European Commission is “ready to table a proposal for a coordinated framework for coordinated and conditioned assistance.”

“I would expect that Europe would endorse the assessment of the Commission on Greece's bold set of measures which would mean that Greece is on track to meet the 4 percent target of deficit reduction this year.”

German bunds are rising in price and two-year yields are two basis points lower at 1.03%, while ten-year yields are one basis point lower at 3.15%.

eurozone employment fell by 0.2% in the fourth quarter, better than the expected drop of 0.5%.

European Union statistics office Eurostat estimates that 221.1m men and women were employed in the EU in the quarter, of which 144.3m were in the euro area.

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