NEW YORK (dpa-AFX) – US government bonds started trading on Wednesday with price gains. Market observers spoke of a counter-movement after the prospect of a further increase in key interest rates had previously weighed heavily on prices and, in return, yields had risen to multi-year highs. The futures contract for ten-year Treasuries (T-Note Future) increased by 0.79 percent to 111.77 points at the start of trading. Ten-year government bonds yielded 3.87 percent.
Previously, the yield had temporarily risen to 4 percent over the ten-year term and thus to its highest level since 2010. Several US central bankers had spoken out and signaled a further determined fight against high inflation. This included James Bullard, head of the St. Louis Regional Federal Reserve. The Fed member said further rate hikes were needed to restore price stability.
In the course of the day, there is only comparatively little economic data on the program that could provide new impetus for the US bond market. Data from the US real estate market is still expected./jkr/jsl/zb