28 Nov 2014
10-yr bond yields fall across the globe
FXStreet (Mumbai) - The benchmark bond prices rallied, pushing the yield lower across most of the advanced economies as falling crude prices are widely expected to push down inflation expectations.
In the Eurozone, bond yields already hit record lows before the OPEC meet, as markets priced-in a possibility of the European Central Bank (ECB) announcing a sovereign bond purchase program. The yields declined further today tracking a sharp fall in oil prices. The German 10-year yield fell one basis points to 0.695%, while the France 10-year yield declined more than 2 basis points to 0.972%. Meanwhile, in the UK the 10-year gilt yield fell to 1.926%.
In the US, the 10-year Treasury yield fell 3 basis points to 2.204%, while the 2-year yield fell 1 basis point to 0.504%. Moreover, the ten-year treasury yield was restricted to 2.27%-2.4% range for major part of this month.
Earlier today, the Asian bond markets witnessed similar action. The ten-year yields weakened in most countries except Australia, where the 10-year yield rose almost 2 basis points to 3.076%. In India, the renewed hopes of an interest rate cut pushed the 10-year yield fell more than 5 basis points to 8.087%.
Bond yields at the long-end of the curve in advanced nations had started declining during mid-October, when the slumping crude prices triggered concerns of deflation.
In the Eurozone, bond yields already hit record lows before the OPEC meet, as markets priced-in a possibility of the European Central Bank (ECB) announcing a sovereign bond purchase program. The yields declined further today tracking a sharp fall in oil prices. The German 10-year yield fell one basis points to 0.695%, while the France 10-year yield declined more than 2 basis points to 0.972%. Meanwhile, in the UK the 10-year gilt yield fell to 1.926%.
In the US, the 10-year Treasury yield fell 3 basis points to 2.204%, while the 2-year yield fell 1 basis point to 0.504%. Moreover, the ten-year treasury yield was restricted to 2.27%-2.4% range for major part of this month.
Earlier today, the Asian bond markets witnessed similar action. The ten-year yields weakened in most countries except Australia, where the 10-year yield rose almost 2 basis points to 3.076%. In India, the renewed hopes of an interest rate cut pushed the 10-year yield fell more than 5 basis points to 8.087%.
Bond yields at the long-end of the curve in advanced nations had started declining during mid-October, when the slumping crude prices triggered concerns of deflation.