U.S. Treasury Yields Rise as Risk Appetite Dims Demand

Wall Street Journal

4 days ago

1039 GMT – U.S. Treasury yields rise in midday European trade, as better risk appetite takes a toll. 'Risk appetite could be fueled by positive developments around trade negotiations and could weigh on bonds,' Excess' Dat Tong says in a note. 'In this regard, yields could react to any developments or setbacks in trade negotiations,' the senior financial markets strategist says. In the most recent development, the U.S. and Japan agreed on a trade deal, with President Trump confirming a 15% tariff on Japanese exports. The two-year Treasury yield is up by 2 basis points at 3.849%, while and the 10-year yield rises 3.8 basis points to 4.373%, according to Tradeweb. ([e-mail])
0754 GMT – Yields on U.K. government bonds rise, tracking similar moves in global sovereign bond yields after a poor performance at an auction of 40-year Japanese government bonds. The 40-year Japanese bond yielded 3.375% at the auction, the highest level on record, and had the weakest demand since 2011, driving all Japanese government bond yields higher, Deutsche Bank Research analysts say in a note. The rise has cascaded across global sovereign bond markets, the analysts say. Ten-year U.K. government bond yields climb 4 basis points to last trade at 4.612%, Tradeweb data show. ([e-mail])