Back
14 May 2015
Bund yields push Treasury yields higher
FXStreet (Mumbai) - The Bund yields have resumed the rally in the early trading on Thursday, thereby pushing the Treasury yields higher into positive territory.
The 10-year Bund yield rose to 0.758%, before cooling down to 0.719%. The uptick helped the 10-year Treasury yield recover losses. However, the bund yield failed to sustain gains and has dropped into losses. The Treasury yields could follow suit in case the bund yields continue to slide.
On Wednesday, both the German and the US yields remained resilient despite weaker-than-expected first quarter German GDP and a weaker-than-expected US advance retail sales data. A strong auction of USD 24 billion in 10-year Treasury spurred demand for Treasurys. But the sell off in sovereign debt soon continued, led by German bunds.
Ahead in the day, the Treasury yields could take cues from the US weekly jobless claims data. However, it remains to be seen if the strong correlation persists or the Treasury yields move as per the jobless claims data.
The 10-year Bund yield rose to 0.758%, before cooling down to 0.719%. The uptick helped the 10-year Treasury yield recover losses. However, the bund yield failed to sustain gains and has dropped into losses. The Treasury yields could follow suit in case the bund yields continue to slide.
On Wednesday, both the German and the US yields remained resilient despite weaker-than-expected first quarter German GDP and a weaker-than-expected US advance retail sales data. A strong auction of USD 24 billion in 10-year Treasury spurred demand for Treasurys. But the sell off in sovereign debt soon continued, led by German bunds.
Ahead in the day, the Treasury yields could take cues from the US weekly jobless claims data. However, it remains to be seen if the strong correlation persists or the Treasury yields move as per the jobless claims data.