Economy news mixes bonds

In the eurozone, news of a stronger-than-expected growth in the German economy sent prices on government bonds down and yields up on Thursday.

The 2-year Schatz saw yields rise 2.2 basis points to 2.191 percent while the 10-year Bund yield of 3.316 percent was little changed.

Germany’s economy grew by 1 percent in the first quarter and the economy of the eurozone as a whole grew by 0.5 percent in the same period.

This news overshadowed data showing Italy in a recession and the Dutch were close to it. In the UK, meanwhile, yields on the 2-year gilt fell 4.5 basis points to 4.349 percent and 10-year gilt yields were down 2.6 basis points to 4.388 percent.

In Japan, the 10-year government bond was yielding 1.285 percent, up 1 basis point. A series of strong US economic data put prices on US Treasury bonds lower and yields higher in mid-day trading in New York.

Yields on 2-year Treasury notes rose 2 basis points to 3.703 percent, while yields on 10-year bonds were up 2.6 basis points to 4.236 percent against a background of an upcoming auction of $14 billion in new Treasury.

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