UK gilt yields higher on house price growth

Yields were mixed on government bonds in the US, the Eurozone, and in the UK on Monday, while Japanese government bonds were mixed on the day.

In the United States, bonds prices dropped as the equities markets saw gains on bids news. In addition, investors were wary about where they put their money ahead of the Federal Reserve’s next decision on interest rates, due Wednesday, even though the Fed is widely expected to keep rates at the current 5.25 percent for the time being.

At late afternoon in New York, two-year Treasury bonds were 2.9 basis points higher, yielding 4.630 percent, while ten-year bonds had added 2.2 basis points to 4.571 percent.

In the UK, yields were up as equities markets were higher and new figures indicated that house price growth accelerated in England and Wales in February. Investors were also looking forward to several major data announcements and a new Budget in the next few days. Two-year gilts gained 4 basis points to a yield of 5.296 percent and ten-year gilts yielded 4.796 percent, a gain of 2.2 basis points.

Meanwhile in the Eurozone, the two-year Schatz added 2.2 basis points to 3.931 percent. The ten-year Bund yielded 3.925 percent, up by 2.2 basis points as well.

With the end of the fiscal year approaching, yields on the two-year Japanese government bond were 1 basis point higher to 0.775 percent, while the ten-year JGB dropped 0.5 basis points to 1.580.