Eurozeon bonds suffer as Bund hits record low

Yields were down and prices up on eurozone bonds on Monday. Yields dropped on
the 2-year Schatz, which fell 2.3 basis points to 2.243 percent.

The 10-year Bund saw yields drop 4 basis points to 3.333 percent, and the 30-year Bund fell
4.1 basis points to a yield of 3.795 at the close of trade. Earlier in the day,yields on the 30-year Bund had reached 3.785, a record low.

In the UK, yields on gilts were also down as auctions of new paper were scheduled for Tuesday and Thursday. Yields on the 2-year gilt were down 2.2 basis points to 4.368 percent, while the 10-year gilt fell 3.6 basis points to 4.356.

Meanwhile, trade in US Treasury bonds was light on Monday morning in front of the anticipated afternoon release of the minutes from the May 3 meeting of the Federal Reserve. Investors were interested to see if there were any further indications of what the Fed’s view of issues surrounding inflation might be.

Prices on bonds were also helped along with the news that the US government would auction only $22 billion of new debt on Wednesday. This was the smallest amount to be sold in the monthly 2-year auction since the end of 2001.

In late morning trading, 2-year Treasury bonds yielded 3.637 percent, yields on 10-year bonds fell to 4.086 percent, and 30-year bond yields stood at 4.407 percent. These yields were down 3 to 4 basis points.

Story link: Eurozeon bonds suffer as Bund hits record low