Treasuries, Bunds slide on US data, Draghi's remarks

Thursday, 25. July 2019 15:56

Prices of government securities issued by the United States, Germany and the United Kingdom surrendered gains and traded lower on Thursday, sending yields back up. Favorable statistical updates on the American economy and confidence expressed by European Central Bank President Mario Draghi that there is low risk of recession in the euro area prompted traders to reduce expectations regarding the intensity of monetary stimulus on either side of the Atlantic.

The euro recovered, oil traded in the green and stocks faltered while precious metals stayed lower. US orders for capital goods, a yardstick for business investment, surprised to the upside for June, initial jobless claims came in lower than last week and wholesale inventories grew less than expected, possibly indicating a rise in spending.

The two-year Treasury yield jumped 2.4 basis points to 1.845% at 9:53 am ET. The 10-year rate surged 4.2 points to 2.092% and the 30-year yield was up five points at 2.623%. Corresponding futures were down 0.07%, 0.23% and 0.52%, respectively. The yield on 10-year German Bunds shifted to a negative 0.339% or 3.4 points higher for the day and Britain's equivalent was up 4.6 points at 0.727%.

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