Government bonds down on economic concerns

Yields on government bonds were generally down around the world on Wednesday.

For example, yields were lower on Japanese government bonds on Wednesday as investors became more interested in long-dated issues.

However, activity was fairly slow as investors awaited the results of a scheduled Bank of Japan policy meeting.

Ten-year government bonds fell 2.5 basis points to yield 1.275 percent. 20-year bonds also were down by 2.5 basis points to a yield of 1.950 percent.

In the US, yields on Treasury bonds feel to a three-month low on Wednesday due to weak inflation figures, continuing credit market nerves, and concerns about growth in Europe.

In New York at mid-day, 2-year Treasury bonds fell 3.3 basis points to yield 3.566 percent, while the 10-year bond yielded 4.073 percent, a drop of 4.8 basis points.

Bonds in the UK were less volatile, on news of mixed employment data an unchanged interest rate. Yields on the 10-year gilt fell 0.6 basis points to 4.338 percent.

In Europe, concerns about weak economic conditions led to increased bond purchases and lower yields. Thirty-year notes yielded 3.796 percent and the 10-year Bund were down to a yield of 3.273 percent.

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