Tuesday Interest Rate Brief
By Andrew Wilkinson:
Government bond prices continued to look tired following a stellar multi-week run higher in response to growing fears for the health of the global economy should Europe’s debt crisis worsen. Peripheral bond prices recovered and the single currency advanced propelled by investors chomping at the bit to buy equities following a slew of losses. Short-end interest rate futures edged lower as fears subsided ahead of a critical European summit on Thursday on hopes that someone holds the keys to the deadlock harnessing the near-default of Greece.
Eurodollar futures – Bond yields rose but prices rebounded from earlier lows as sentiment towards some kind of breakthrough resolution for Europe’s sovereign debt crisis fluctuated. Benchmark treasury yields rebounded from a sharper sell off as risk appetite gained momentum as European stocks rose. The benchmark 10-year yield at its peak on Tuesday reached 2.97% following news that housing starts surged by 14.6% lastComplete Story »