Market Snapshot: US, UK, German and Japanese Bond Yields Continue to Rise

Benchmark bond yields increased today in the U.S., Europe, and Japan, according to Tradeweb data.

As of 3:11 PM ET, the bid yield on the 10-year U.S. Treasury note was 1.894%, up 6 bps from yesterday’s close of 1.834%. The intraday high was 1.897%, and the intraday low was 1.834%. This follows a $20 billion auction of 10-year notes. 

In the U.K., the Office of National Statistics released data showing that British manufacturing rose 0.7% and industrial output rose 0.3% in January. Following this, the bid yield on the 10-year Gilt increased 10.7 bps, from 1.365% to 1.472%. The intraday high was 0.1486%, and the intraday low was 1.366%.

In Germany, the bid yield on the 10-year Bund increased 7.1 bps, from 0.171% to 0.242%. The intraday high was 0.242%, and the intraday low was 0.179%. This movement comes amid speculation that the ECB will increase monetary stimulus and cut its deposit rate again, which would make a greater number of bonds available for purchase. 

As of market close on March 8, 2016, 49.32% of Euro-denominated bonds had negative bid yields, according to Tradeweb data. Of these securities between 2 and 30-years, 16.96% had bid yields below -0.30%; 10.80% had bid yields below -0.40%; and 5.37% had bid yields below 0.50%.

In Japan, after hitting a new low yesterday, the bid yield on the 10-year bond was -0.011%, up 7.6 bps from yesterday’s close of -0.087%. The intraday high was -0.009%, and the intraday low was -0.060%. This comes amid ongoing volatility in the value of the yen and news that exports in China fell 25.4% in February year-over-year.

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

CHART 1: U.S. 10-Year Treasury Yields – March 11, 2015 – March 9, 2016 (12 Month View)

CHART 2: U.K. 10-Year Gilt Yields – March 11, 2015 – March 9, 2016 (12 Month View)