US and EU bonds up as Japanese bonds offer lower yields

Yields on government bonds in the U.S. and eurozone were up on Tuesday, while yields stayed low in Japan.

In the U.S., treasury bond prices were lower and yields higher as a surge in the sale of new homes seemed to make up for a weaker than expected consumer confidence index.

The yield on 10-year treasury bonds went up 6 basis points to 4.29 percent early; however they fell back to 4.27 percent by late-day trading Tuesday.

In response to this news from the U.S., eurozone bond prices fell from earlier rises, as yields went up.

Yields on the 2-year Schatz went up 2.1 basis points to 2.324 percent and yields on the 10-year Bund rose 0.7 basis points to 3.450 percent. Yields on longer-term bonds, however tended to fall in the eurozone.

In Japan, some investors were jumped into the bond market due to ongoing concerns over the economy, which is stuck in a long-term round of deflation. Other investors purchased bonds with an eye to earning interest next week over the Golden Week holiday, when most Japanese markets are closed.

Yields on 10-year bonds were down to 1.255 percent, only half a basis point below the 14-month low reached last week.

Story link: US and EU bonds up as Japanese bonds offer lower yields