NEW YORK (dpa-AFX) – US government bonds gave back part of their initial gains later in trading on Wednesday. The futures contract for ten-year Treasuries (T-Note Future) recently rose by 0.05 percent to 126.64 points. Conversely, the yield on ten-year government bonds fell to 1.95 percent. On Tuesday it had risen to 1.96 percent, reaching the 2019 level.
Monetary policy remains the dominant theme in the bond market. Most recently, Mary Daly, San Francisco’s regional Fed Chair, confirmed that the US Federal Reserve (Fed) will likely start raising interest rates in March to combat high inflation. The prerequisite is that the economic data does not come as a clearly negative surprise. On Friday, a strong US jobs report for January increased the pressure to act and drove yields./ck/he