By Chris Becker
A mixed Asian session has turned into ebullience overnight as the rout in the bond market finally took a pause, with major yields falling across the board. A better than expected weekly initial jobless claims print in the US helped lift stocks and deep deflation in the PPI pushed tightening fears out as well, as the US dollar continued to weaken.
US 10 year Treasuries were bought, with yields falling 5 bps to 2.23% while UK gilts fell below 2% and 10 year German bunds lost 2bps to 0.7% – a reminder the Bund yield is up 0.56% for the month!