UK government bonds increase in price

Prices rose on UK and eurozone government bonds on Wednesday as investors looked forward to data on durable goods orders out of the United States.

Additionallym, markets noted how at least one member of the monetary policy committee of the Bank of England worried that a decline in the housing market in the UK could impact negatively on consumer spending.

The 10-year gilt lost 1.9 basis points to yield 4.288 percent, while the 2-year gilt was down 0.7 basis points to a yield of 4.109 percent. In the eurozone, the 2-year Schatz fell 1.6 basis points to a yield of 2.203 percent. The 10-year Bund lost 0.8 basis point to yield 3.214 percent.

In the United States, Treasury bond yields were influenced by the release in the afternoon of the Federal Reserve’s “beige book” report surveying economic conditions in its 12 regional districts around the country.

The 2-year treasury bond was yielding 3.98 percent at the close, while 5-year issues yielded 4.09 percent, 10-year bonds were yielding 4.25 percent, and 30-year paper yields were at 4.47 percent.

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