NEW YORK (dpa-AFX) – US government bond prices rose significantly on Friday. The futures contract for ten-year Treasuries (T-Note future) rose 0.42 percent in early trading to 128.22 points. In contrast, the yield on ten-year government bonds fell to 1.77 percent. On Tuesday it had reached a two-year high of 1.9 percent.
The demand for the government bonds that are considered safe is high at the end of the week. Price gains were also recorded on the European bond markets. The background to this is investors’ recently reduced willingness to take risks, because fears of a significantly tighter monetary policy in the USA are once again determining what is happening on the capital markets. The US Federal Reserve is likely to start tightening interest rates in March in order to curb high inflation. Experts expect the Fed to give the go-ahead at its meeting next week.
In the USA, a composite index made up of several leading indicators is expected over the course of the day. As a rule, however, it hardly moves the markets./la/bgf/jha/