German, UK bonds weaken as stocks surge

Freitag, 18. Januar 2019 17:25

Brexit concerns were set aside on Friday as stock markets in the United Kingdom and the Eurozone jumped, which drove away investors from sovereign debt securities. Bonds mostly declined, lifting stocks, with an acceleration before the closing bell for equities. Sentiment was underpinned with media speculation that China is ready to raise purchases of goods from the United States by a total of $1 trillion over six years in order to reach a compromise and end the bilateral trade war, which rattled the markets and lowered projections of global economic growth.

The German two-year note yield advanced to a negative 0.581% at 5;21 pm ET. The benchmark 10-year measure jumped 1.8 basis points to 0.263% after touching 0.278%, the highest since December 13. The yield for 30-year maturities rose two points to 0.869%. Prices of equivalent futures were down 0.01%, 0.17% and 0.42%, respectively.

The yield on the British two-year Treasury note was slightly lower at 0.81%, but the 10-year gauge surged 1.8 points to 1.245%, compared to a boost of 1.6 points to 1.867% in the 30-year yield.

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