FRANKFURT (dpa-AFX) – US bond prices rose on Tuesday, continuing the upward movement at the start of the week. The trend-setting futures contract Euro-Bund-Future rose by 0.36 percent to 128.76 points in the morning. In return, the yield on ten-year federal bonds fell to 2.82 percent.
Market observers explained the temporary end to the rise in yields with the latest developments in the US bond market. Here the return on Monday initially rose above the 5 percent mark for the first time in 16 years, but then fell significantly. It is encouraging that the yield over the ten-year term has bounced back from the 5 percent mark, according to an assessment by bond experts at Commerzbank: “The market remains weak overall, but we see rays of hope on the horizon.”
Late on Monday evening, US bonds had extended their price gains and yields fell in return. This development has also had an impact on the European markets, market observers said.
As the day progresses, new economic data is also likely to become more of a focus. The program includes initial data on the mood of purchasing managers in the Eurozone in October. The economic indicator is receiving a lot of attention on the financial markets and could provide new impetus.
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