World bond markets down Tuesday

Bond yields on government bonds were down in Japan, the UK, the US and the eurozone on Tuesday.

In Japan, the 10-year government bond was down 1 basis point to a yield of 1.23 percent. In the UK, news that house prices were down for the second month in a row sent 2-year gilt yields down 3.9 basis points to 4.280 percent while 10-year yields fell 4.4 basis points to 4.236 percent.

US Federal Reserve chairman Alan Greenspan’s comments to a banking conference in Beijing concerning falling yields on long-term bonds affected bond yields in both the US and the eurozone, where the 2-year Schatz fell 5.2 basis points to yield a two-year low of 2.036 percent and the 10-year Bund yielded 3.15 percent, down even further than last week’s record low of 3.167 percent.

Mr. Greenspan’s comments, plus the news that General Motors plans widespread job cuts sent US Treasury bond yields lower at mid-day in New York. 2-year bonds had fallen 1.2 basis points to a yield of 3.57 percent, 10-year bond yields were down 2.7 basis points to 3.929 percent, and 30-year yields fell 3.8 basis points to 4.208 percent.

Story link: World bond markets down Tuesday