UK, German bonds weaken on rise in stocks

Markets 12/7/2018, 10:15 AM
UK, German bonds weaken on rise in stocks

Equities in Europe advanced on Friday from the levels last seen even more than two years before, as investors saw them oversold in the latest surge in uncertainty through yesterday. Sovereign debt securities issued by the governments in Berlin and London mostly remained on a downward slope as sentiment shifted toward risk appetite, but at a milder pace. Markets regained confidence after speculation in the media that the central bank of the United States would consider slowing down the intensity and frequency of interest rate increases. Treasuries rose, pushing yields down, but the short end of the curve remained inverted.

At the same time, Italy's bonds rebounded. The two-year yield was at 1.064% at 10:11 am CET or 6.8 basis points down for the day. The 10-year note yield fell five points to 3.158%, compared to the decline of 3.2 points to 3.755% for the 30-year bond gauge.

The German two-year yield was up at a negative 0.607%. The ten-year Bund yield grew to 0.248% and the 30-year measure rose to 0.885%. Corresponding futures were unchanged and slipped 0.01% and 0.02%, respectively. The two-year British yield rose to 0.751%, while the other two benchmarks advanced to 1.12% and 1.852%, respectively.

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