Bonds round-up: US GDP figures boost Treasuries
30 Jul 2010
US GDP figures overshadow all the bond markets today. The weaker than expected growth figure has sent US Treasuries higher.
Two-year yields are two basis points lower at 0.55%, whilst ten-year yields are six basis points softer at 2.92%.
US gross domestic product (GDP) grew at an annualised rate of 2.4% in the second quarter, less than estimates.
The rate of growth was down from a revised figure of 3.7% in the first quarter and will fuel worries that the world's number one economy could slip back into recession. The US economy has now grown for four consecutive quarters.
Consumer confidence is causing concern in the UK. It waned further in July, raising the prospect that the UK's economic recovery might stall.
The GfK NOP index of consumer sentiment eased to -22 from -19 in June, its lowest level in 11 months and the fifth month in a row that it has shown a decline. Economists were braced for a fall in the index but the consensus was for a gentler decline to -20.
Gilts are sharply higher. Two-year yields are seven basis points down at 0.77% and ten-year yields are nine basis points lower at 3.32%.
German bunds are going in the same direction. Two-year yields are five basis points softer at 0.78%, while ten-year yields are down by the same amount at 2.67%.
The unemployment rate stayed at 10% in June across the 16 countries that use the euro, the EU statistics agency Eurostat reported today.
