Bonds: US government bonds weaker as market returns gains
US government bonds fell as the market returned gains from Monday. A recovery in oil prices added to the selling pressure.
The US Treasury 10-year yield was at 2.18%, a rise of 3 basis points.
The market is waiting for official US jobs figures on Friday for an indication of the strength of the recovery in the labour market. Investors are also waiting to see whether or not the Federal Reserve will go ahead with an expected interest rate rise in September which would be the first in nine years.
However, weak commodities prices and a slowing Chinese economy may give the Fed pause for thought before it goes ahead with any rise.
Orders for goods produced in US factories climbed 1.8% in June, the Commerce Department said Tuesday.
The reading was in line with expectation following a downwardly revised 1.1% decline in May.
The Greek 10-year yield fell 11 basis points to 11.38%. The Athens stock market Index dropped for a second day after falling as much as 23% on Monday on concerns over the country’s bailout talks and economy.
Greek government spokeswoman Olga Gerovasili said Athens expects to conclude the bailout deal with creditors by 18 August. The drafting of the accord begins on Wednesday, she told the Skai TV station.
In the UK, 10-year gilts fell as the yield rose 1 basis point to 1.87%. German bunds were also slightly lower with the yield up 1 basis point to 0.64%.