Market Snapshot: European 10yr Yields Increase Following ECB, Riksbank Monetary Decisions, U.S. Yields Also Increase

Yields on government securities in Europe increased today following the ECB’s decision to leave all its interest rates unchanged, according to Tradeweb data.

The bid yield on the 10-year German Bund increased to 0.238%, up 9.1 bps from yesterday’s close of 0.147%, with an intraday high of 0.242 and an intraday low of 0.153%.

Peripheral yields also increased. The bid yield on the Italian 10-year increased to 1.462%, up 6.4 bps from yesterday’s close of 1.398%, and intraday trading ranged from a high of 1.475% to a low of 1.397%. 

The Spanish 10-year increased to 1.594%, up 5.8 bps from yesterday’s close of 1.536%, and intraday trading ranged from a high of 1.618% to a low of 1.533%. 

The French 10-year was up to 0.568%, an increase of 7.7 bps from yesterday’s close of 0.491%, and intraday yields ranged from a high of 0.574% to a low of 0.496%.

The Portuguese 10-year was 3.023%, up 1.2 bps from yesterday’s close of 3.011%, with an intraday high of 3.082% and an intraday low of 2.976%.

Meanwhile, the Riksbank in Sweden announced it was raising its bond-buying target to 245 billion Swedish kronor ($30.35 billion). The move adds the purchase of 45 billion kronor in government bonds in the second half of 2016 to the 200 billion kronor the central bank is currently in the process of buying by the end of June. 

The bid yield on the 10-year Swedish bond increased to 0.872%, up 10.6 bps from yesterday’s close of 0.766%, with an intraday high of 0.883% and an intraday low of 0.760%.

In the U.K., where the Debt Management Office announced an additional £2.1 billion for the current financial year due to a larger-than-expected budget shortfall, the bid yield on the 10-year Gilt was 1.587%, up 12.2 bps from yesterday’s close of 1.465%. Trading ranged from an intraday high of 1.599% to an intraday low of 1.467%.

In the U.S., where jobless claims declined by 6,000, to a seasonally adjusted 247,000, the bid yield on the 10-year Treasury note was 1.877%, up 2.5 bps from yesterday’s close of 1.852%. Trading ranged from an intraday high of 1.886% to an intraday low of 1.833%.

Yields were taken at 2:30 PM ET. 

The charts below are based on indicative, real-time data from Tradeweb.

CHART 1: German 10-Year Bund Yield – April 23, 2015 – April 21, 2016 (12 Month View)

CHART 2: Swedish 10-Year Yield – April 23, 2015 – April 21, 2016  (12 Month View)