Yields up on five-year Japanese government bond

Once again, Japanese bonds bucked the trend set by the US, the UK and the Eurozone as five-year Japanese government bonds saw yields rise by 4.5 basis points to 1.265 percent on Wednesday.

In the US, yields on Treasury bonds dropped on weak new economic data. Employment was up by less than expected in March, according to research firm ADP, while the figures on services from the Instutite for Supply Management showed that its US services index was down to 52.4 in March after being at 54.3 in February. In addition, factory orders were lower than had been expected, rising only 1 percent in February, and mortgage applications last week were down by 3.2 percent.

At late morning in New York, two-year Treasury bonds were yielding 4.583 percent, a decline of 3 basis points, while ten-year paper was also down by 3 basis points to a yield of 4.636 percent.

There was also bad news from the UK service sector, sending yields on the two-year gilt down 2.1 basis points to 5.459 percent. Yields on ten-year gilts were at 4.976 percent, a decline of 4.2 basis points. Meanwhile in the Eurozone, the two-year Schatz dropped 1.6 basis points to 4.023 percent and the ten-year Bund was 3.2 basis points lower to a yield of 4.072 percent.

Story link: Yields up on five-year Japanese government bond