Profit-taking sends bond yields higher

Profit-taking sent yields higher on government bonds in the eurozone on Thursday. The 10-year Bund was up 0.2 basis points to yield 4.259 percent.

Analysts did not think that corresponding declines in bond prices would last too long as signs of slow growth in the region continued to accumulate.

Consumer confidence slid in Italy, while in France the office of national statistics lowered their growth forecast.

The 10-year gilt in the UK also yielded higher, up 0.6 basis points to 4.259 percent.

In the United States, investors paid little attention to new figures showing that new unemployment claims are down, but they did pay attention to testimony from Alan Greenspan and Treasury secretary John Snow on matters relating to China before the finance committee of the US Senate.

The 10-year Treasury bond was yielding 3.965 percent at late morning in New York, up 1.9 basis points.

Meanwhile in Japan, the 10-year government bond lost 4 basis points to a yield of 1.225 percent as investors reacted to rallies in global bond markets earlier in the week.

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