Global Bond Markets See Sudden Shift: U.S. 10-Year Yields Surge, UK Budget Bill Sparks British Bond Yield Rally
- The 10-year bond yield rose in the New York bond market today, despite being down in the first half.
- Strong ADP employment statistics and preliminary US GDP figures for the third quarter, which showed strong consumer spending, contributed to the rise in bond yields.
- The 10-year US bond price fell to the 4.19% level at one point but rose to 4.28% in the second half.
US Bond Yields Rise in New York Market
Updated: NY time 17:49, Japan time 06:49
| Bond Term | Yield | Change |
|---|---|---|
| 2-year bond | 4.183% | +0.086% |
| 10-year bond | 4.300% | +0.046% |
| 30-year bond | 4.504% | +0.005% |
| Expected inflation rate | 2.347% | +0.033% |
The 10-year bond yield rose in the New York bond market today, despite being down in the first half. The rise in UK bond yields following the announcement of British Chancellor of the Exchequer Reeves’ Autumn Budget on the same day has also pushed up US bond yields.
Strong ADP employment statistics and preliminary US GDP figures for the third quarter, which showed strong consumer spending, contributed to the rise in bond yields. Although the GDP figures were lower than expected, they still indicated a robust economy.
The 10-year US bond price fell to the 4.19% level at one point but rose to 4.28% in the second half. The yield gap between 2 and 10-year bonds was +12 (previous business day: +16), meaning the yield curve has flattened.
US 7-year Bond Auction Results
Highest bid yield: 4.215% (WI: 4.235%)
Bid ratio: 2.74x (previous: 2.63x)
By Takumi Nozawa, Editorial Department