German, UK bonds drop as stocks stagnate

Wednesday, 17. April 2019 10:24

Prices of government debt securities issued in London and Berlin were under pressure on Wednesday, pushed by equivalent bonds in the United States, which sent yields higher. Wall Street was nearing the highest levels in history as the beginning of the earnings season mostly showed growth, though banks have disappointed with revenue and Netflix offered surprisingly weak guidance. The rise in risk appetite in the US still failed to spill over to Europe.

Equities in the Eurozone and the United Kingdom held near yesterday's six-month records as investors cashed in. Sentiment was underpinned by ZEW's update on investor morale in the monetary union's largest economy. The euro rose, looking to reach a three-week high.

Germany's two-year note yield gained slightly for the day to a negative 0.563% at 10:21 am CET. The ten-year Bund rate jumped 2.4 basis points to 0.095%. The yield on 30-year bonds advanced 0.27 points to 0.757%, steepening the curve further. Equivalent futures dipped 0.02%, 0.15% and 0.42%, respectively. Yields on two-year, ten-year and thirty-year British debt climbed 1.3 points to 0.819%, 2.3 to 1.245% and two points to 1.745%, respectively.

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