Eurozone bonds fall to monthly low

Yields on eurozone government bonds fell to their lowest level of the month as shaky production numbers and data showing inflation rates under control had little effect on the markets. The 10-year Bund fell by 3 basis points to 3.202 percent, while the 2-year Schatz lost 2.3 basis points to a yield of 2.169 percent.

In the UK, gilts saw prices rise and yields fall as well, as retail sales figures for July were not down as far as had been expected. The 2-year gilt declined by 0.7 basis points to yield 4.209 percent and the 10-year gilt fell by 3.5 basis points to a yield of 4.250 percent.

Meanwhile in the United States, a survey showed business activity up more than analysts had expected. The market, however, did not seem to react to that news and while trade spiked around the time that report was released volumes were generally low. By late in the day in New York, the 2-year Treasury bond had lost 4.2 basis points to yield 4.009 percent, while the 10-year was down 6 basis points to a yield of 4.215 percent.

In Japan yields fell as well on government bonds, with the 10-year bond losing 0.5 basis points to yield 1.420 percent.

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