Bond yields down across board

Bond yields in the UK, the eurozone, and the US were all down on Tuesday. Yields in the UK fell on news of weak retail numbers. The 2-year gilt was down 7.8 basis points to a yield of 4.305 percent, while 10-year yields fell 9.6 basis points to a 4.307 percent.

In the eurozone, negative data concerning the business climate and consumer sentiment, showing both in decline, took yields on the 10-year German Bund down to 3.260 percent. Meanwhile in the United States, the Chicago purchasing managers’ index fell to 54.1 in May. This was lower than the expected level of 62 and well below April’s index figure of 65.6, and investors assigned these figures more importance that other data indicating that consumer confidence in the US is higher.

In consequence, yields on the 10-year US Treasury bond fell to a 3-month low of 3.994 percent before recovering in late afternoon to a yield of 4 percent, losing 7.5 basis points. Thirty-year bond yields were also lower, down 9.1 basis points to 4.339 percent. This was
the lowest yield on the 30-year bond since June of 2003.

Story link: Bond yields down across board