8 Jun 2015
US-German 10-year bond yield spread narrows to 152 basis points
FXStreet (Mumbai) - The difference or spread, between the US and German benchmark 10-year bond yield narrowed to 152 basis points on Monday, compared to 157 basis points seen on Friday.
The 10-year German Bund yield currently trades at 0.871%, while its US counterpart currently hovers around 2.39%. The spread hit a low of 150 basis points earlier today, before Bund price recovered part of their losses.
The spread had advanced to 157 basis points on Friday after the labor department data in the US showed stellar job gains in May, coupled with a rise in average hourly earnings. Moreover, the US yields shot higher, outperforming German yields as the strong jobs report increased the odds of a rate hike at the September meeting.
The European and US economic calendar does not offer any major first tier economic data releases today. Consequently, the yield spread is at the mercy of the sentiment in the German bond market.
The 10-year German Bund yield currently trades at 0.871%, while its US counterpart currently hovers around 2.39%. The spread hit a low of 150 basis points earlier today, before Bund price recovered part of their losses.
The spread had advanced to 157 basis points on Friday after the labor department data in the US showed stellar job gains in May, coupled with a rise in average hourly earnings. Moreover, the US yields shot higher, outperforming German yields as the strong jobs report increased the odds of a rate hike at the September meeting.
The European and US economic calendar does not offer any major first tier economic data releases today. Consequently, the yield spread is at the mercy of the sentiment in the German bond market.