US Treasuries posted gains just before the weekend. The futures contract for ten-year Treasuries (T-Note Future) rose by 0.36 percent to 116.23 points. In contrast, the yield on ten-year government bonds fell to 3.24 percent. On Tuesday it was 3.49 percent, its highest level in eleven years.
Market participants justified the price gains with a countermovement to the sometimes heavy losses in the past few days and weeks. Due to key interest rates rising sharply in many places, the prices of many bonds have collapsed at a historically high rate. In return, capital market yields have risen sharply. In the current week, three prominent central banks had theirs with the US Federal Reserve, the Bank of England and the Swiss central bank monetary policy tightened to deal with high inflation.
There was also weak economic data on Friday. Industrial production in the USA in May rose only half as much as expected compared to the previous month.
NEW YORK (dpa-AFX)