NEW YORK (dpa-AFX) – US government bond prices started trading weaker on Monday, picking up on Friday’s losses. A generally friendly mood on the international financial markets at the start of the week led to lower demand for comparatively safe US bonds. The futures contract for ten-year Treasuries (T-Note future) fell by 0.11 percent to 118.92 points. The yield on ten-year government bonds rose to 2.97 percent.
Market observers referred to the pre-market trading on the US stock exchanges, which suggests price gains in the leading Dow Jones index. Recent reports from China made investors more willing to take risks and thus put pressure on fixed-income securities. China’s government had relaxed corona measures in major cities, raising hopes for more economic growth. In addition, mood data from China’s economy had recently turned out better.
Investor interest in the US bond market is likely to focus more on price developments as the week progresses. Against the backdrop of strong inflation, investors are eyeing US inflation data due later in the week. These are likely to be decisive for the pace of further tightening of monetary policy by the US Federal Reserve.
/jkr/men