Eurozone bonds at record lows

Eurozone bonds were stuck at record low yields on Thursday as investors were still dealing with the uncertainty spawned by this week’s rejection of the European Union constitution by both French and Dutch voters.

The 10-year Bund yielded record low of 3.210 percent. Meanwhile in the UK, gilt yields held nearly steady ahead of upcoming US employment data. Yields on 10-year gilts fell 0.7 basis points to 4.237, near the lowest yields since July 2003.

In the United States, prices on US Treasury bonds fell again after Wednesday’s declines while investors also wait for new US employment data, due out Friday. The employment figures are predicted to show an increase of 180,000 jobs. Higher numbers could trigger a sell-off and lower figures would prompt more bond purchases.

In the middle of the trading day in New York, 2-year Treasuries were up 4 basis points to a yield of 3.524 percent, while 10-year bonds advanced 1.3 basis points to yield 3.905 percent.

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