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Bond market sell-off pauses as Treasuries, Bunds recover

Published 11/15/2016, 05:10 AM
© Reuters.  Bond rout eases as Treasuries, Bunds recover
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Investing.com - Global bond prices were higher for the first time in almost a week on Tuesday, pushing yields off multi-month peaks as the "Trumpflation" trade began to fade.

The yield on the U.S. 10-year Treasury was down 3.5 basis points at 2.187% by 5:10AM in New York (10:10GMT), after rising to as high as 2.302% the day before, a level not seen since January 6.

The yield on the 10-year note was below 1.8% in the days leading up to the election. The 41 basis point jump over the last three trading sessions marked the steepest climb in more than seven years.

Meanwhile, the 30-year yield dipped 5.1 basis points to 2.932%, after touching 3.080% in the prior session.

U.S. yields have been on a tear following Donald Trump's U.S. election win last week, as traders reassessed the implications of a Trump presidency, with many seeing it ushering in higher economic growth and rising inflation.

Elsewhere, in Europe, yields on 10-year German Bunds were down 3.2 basis points to 0.300%. On Monday, the yield rose to 0.397%, the strongest since late-January.

The U.K.’s 10-year gilt yields were 4.4 basis points lower at 1.367%, after touching 1.491% a day earlier, surpassing levels last held shortly before the Brexit referendum in June.

In Japan, 10-year bond yields rose to zero for the first time in almost two months, continuing its rebound from the record low of minus 0.3% set in July. The Bank of Japan said in September it aims to anchor the yield at about zero.

Bond prices and yields move inversely.

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