German, UK bonds drop on Brexit deal rejection

Wednesday, 16. January 2019 13:27

Markets indicated caution on Wednesday as the government of the United Kingdom was preparing a strategy after lawmakers overwhelmingly voted against its arrangement with the European Union about the country's withdrawal. European stocks were mixed and the dollar advanced against major peers while investors also sold off benchmark sovereign bonds, including those issued by the Department of the Treasury in Washington.

Germany's two-year note slipped at 1:23 pm CET, pushing the yield 0.9 basis points higher to a negative 0.607%. The ten-year measure advanced 1.8 points to 0.228%, compared to a three-point jump to 0.851% in the yield on 30-year bonds. Prices of corresponding futures declined 0.01%, 0.11% and 0.43%, respectively.

The British two-year yield jumped 3.2 points to 0.82%. The session high, at 0.848%, was last seen on a closing basis on October 11. The ten-year gilt yielded 1.21%, a surge of 5.5 points, and the gauge climbed 4.8 points to 1.828% for the 30-year maturity. The latter earlier hit 1.855%, the highest level since December 5. Meanwhile, the yield on the 10-year United States government note rose 2.4 basis points to 2.742%.

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