Market Snapshot: U.S., Core European Government Bond Yields Drop Following Jobless Claims, ECB Meeting

| Tradeweb

Yields on U.S. and core European government bonds fell today, according to data from Tradeweb.

The bid yield on the 10-year U.S. Treasury note was 2.019% as of 1:37 PM EST, down 1.1 bps from yesterday’s close of 2.030%. Today’s intraday low was 2.016%, while the intraday high was 2.053%.

The bid yield on the 2-year U.S. Treasury note was 0.597% as of 1:37 PM EST, down 2.8 bps from yesterday’s close of 0.625%. Today’s intraday low was 0.597%, while the intraday high was 0.641%.

These moves followed the release of weekly jobless claims data, which fell to 259,000 vs. an estimate of 265,000, and the postponement of a two-year note auction due to the congressional impasse over the debt ceiling.

In Europe, the ECB held interest rates steady at current low levels. ECB President Mario Draghi repeated his support for expanding quantitative easing and cutting the already-negative deposit rate, if warranted by economic conditions. Below are the yields on some core European government bonds following his remarks:

  • 10-Year German Bund: 0.489%, down 8.3 bps from yesterday’s close of 0.572%
  • 10-Year U.K. Gilt: 1.792%, down 8 bps from yesterday’s close of 1.800%
  • 10-Year Italian Bond: 1.454%, down 16 bps from yesterday’s close of 1.614%
  • 10-Year Spanish Bond: 1.601%, down 15.6 bps from yesterday’s close of 1.757%
  • 10-Year Irish Bond: 1.182%, down 11.3 bps from yesterday’s close of 1.182%
  • 10-Year Portuguese Bond: 2.336%, up 11.9 bps from yesterday’s close of 2.455%
  • 10-Year French Bond: 0.852%, down 8.2 bps from yesterday’s close of 0.850%

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

CHART 1: U.S. 10-Year Treasury Yields – October 23, 2014 – October 22, 2015 (12 Month View)

CHART 2: U.S. 2-Year Treasury Yields – October 23, 2014 – October 22, 2015 (12 Month View)

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