Eurozone bonds volatile as bond market yields fall

US Treasury bonds saw prices fall and yields move higher on 10- and 30-year bonds on Wednesday, while the 2-year bond remained at its previous level of 3.603 percent.

The 10-year bond rose 1 basis point to 4.046 percent and the 30-year bond yielded 4.386 percent. In Japan, the opposite was true as prices were up and yields were down, with the 10-year government bond losing 3 basis points to yield 1.225 percent.

Eurozone bond prices were more volatile, rising while yields fell to a record low at one point on Wednesday amid more bad economic news for the region. At the close of trade on Wednesday, yields on the 10-year Bund had risen 1.9 basis points to 3.318 percent, but at one point in the day yields reached a record low of 3.269 percent. The 2-year Schatz lost 0.7 basis points to yield 2.196 percent.

In Germany, the Ifo business climate index was down to 92.9 in May from 93.3 in April. It was the fourth month in a row that the index went down.

UK bonds followed the lead of eurozone bonds as gilt prices rose and yields fell before they reversed course as the 2-year gilt rose 0.1 basis point to a yield of 4.339 percent, and the 10-year gilt went up 1.4 basis points to 4.345 percent.

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