Aggressive buying has pressured government debt yields on traditional safe-havens to their lowest levels since the beginning of June. When bond yields fall, bond prices rise, and so alternative you could say that bonds are rallying.
Here’s the scoreboard:
- UK 10-year yield: -18 basis points at 1.82%
- Germany 10-year yield: -12 basis points at 0.639%
- France 10-year yield: -11 basis points at 1.13%
- US 10-year yield: -9 basis points at 2.19%
Interestingly, peripheral debt is also bid, but yields remain near multi-month highs.
- Spain 10-year yield: -8 basis points at 2.28%
- Italy 10-year yield: -9 basis points at 2.29%
Lagging notably is Portugal, who was a previous recipient of an IMF bailout, but exited the program in May 2014. While yields across most of Portugal’s curve are higher, the 10-year holds slightly below the flat line.
- Portugal 10-year yield: -2 basis points at 3.13%