Bonds round-up: Recession fears underpin bonds
Government bonds close out the week on a firm note, as fears of a US recession linger. The Philadelphia Fed index, released yesterday, reported that regional manufacturing fell to -24.0 from -20.9 in January against expectations of an improvement.
In other economic news yesterday, the January index of leading economic indicators fell for the fourth straight month, down 0.1% as expected.
The yield on the benchmark 10-year treasury note fell 4 basis points to 3.73%.
(Article continues below)Advertisement
In Europe, bonds edged higher after euro zone industrial orders fell 3.6% in December from the previous month and rose 2.1% year-on-year.
The yield on the benchmark 10-year bund dipped 2 basis points to 4.67%.
UK gilts underperformed their European counterparts, as yesterday's announcement of a surprising surge in retail sales in January makes the prospect of a UK interest rate cut less likely. The yield on the benchmark 10-year gilt fell 1 basis point to 4.67%.
