U.S. Treasury Yields Steady as Bond Markets Stabilize; European Yields Rise
By Emese Bartha and Miriam Mukuru
U.S. government bond yields were steady on Friday while European bond yields rose although kept below recent multiyear highs in early European trade. This followed rate decisions by the Federal Reserve, the Bank of England and the Bank of Japan this week.
The Fed's 25-basis-point interest-rate hike on Wednesday, and signals of another raise to come this year, convinced markets about the seriousness of the Fed's inflation-fight.
The Bank of Japan also raised its policy rate to 1.25% on Friday, the highest since 1995, albeit in a split vote. The Bank of England's decision to hold rates and to stop the sale of long-dated gilts relieved markets and pushed gilt yields lower on Thursday.
Ten-year U.S. Treasury yields were little changed at 4.951%, having risen above the 5% psychological barrier earlier this week, Tradeweb data showed.
This week's Fed rate decision brought relief to markets and lowered the uncertainty around the central banks' commitment to tackle inflation. Falling oil prices also eased inflation concerns and caused Treasury yields to decline. Brent crude prices ...