FRANKFURT (dpa-AFX) – German government bonds also increased in price on Tuesday morning. At the start of trading, the futures contract Euro Bund Future rose by 0.25 percent to 141.12 points. Ten-year Bunds yielded 1.90 percent, well below their recent eleven-year high of 2.35 percent.
At the beginning of the week, federal securities had risen significantly, but their yields had fallen sharply. The development follows the sometimes sharp increases in interest rates in recent weeks. Analysts at Landesbank Hessen-Thüringen explained that the trend towards rising yields had recently come to a standstill. “In our opinion, it would still be premature to speak of a trend reversal.”
Australian government bonds also posted price gains, particularly in the shorter maturities. The country’s central bank raised interest rates again to combat high inflation, but only by 0.25 percentage points. The majority of analysts, on the other hand, had expected the central bank to continue its rapid tightening course with a further increase of 0.5 points. Regardless of this, Central Bank Chairman Philip Lowe announced further rate hikes.
In the euro zone Investors are likely to eye fresh price data on Tuesday. Figures are published by the manufacturer level. With a time lag, these also affect consumer prices, on which the European Central Bank (ECB) bases its monetary policy aligns. In addition, some central bank officials want to speak publicly.
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