UK, German bonds retreat on hope in trade war end

Wednesday, 09. January 2019 10:51

Prices of benchmark debt issued by governments in Europe declined across the board on Wednesday, which means yields advanced, as stocks reached one-month highs. Investors were waiting for the joint statement from the United States and China after mid-level officials reportedly struck a tentative agreement about trade and the protection of intellectual property, which should pave the way for elevating negotiations to the top level. The unconfirmed news lifted spirits in the markets and boosted risk appetite on hope the trade war could be ended, while relatively safer assets were sold off. US Treasuries also declined, together with a modest weakening in the dollar.

Germany's two-year yield increased by 1.1 basis points at 10:48 am CET to a negative 0.571%. The ten-year Bunds yielded 0.243% or 1.3 points more for the day, compared to the rise of 1.4 points to 0.883% for the 30-year bonds. Corresponding futures contracts lost 0.01%, 0.08% and 0.19%, respectively.

The yield on the British two-year note climbed 1.2 points to 0.775%. The ten-year gauge increased by 2.1 points to 1.176% and the 30-year yield gained 0.7 points to 1.817%.

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