The picture is getting darker in the world of fixed income, due to the sharp rise in Italian and German sovereign debt.
Italian 10-year BTPs are up 14.1 basis points today, surpassing April highs. They are now within reach of the 4% level that capped February’s rise.
In Germany, Bund yields are also up 8.7 basis points and trading at record highs.
The sentiment has spread to the United States, where US 10-year bonds are up 6.4 basis points. Eyes will be on the span five years later with a $70 billion auction at 1 p.m. ET.
It is unclear what the catalyst for this decision was. Visa’s commentary yesterday cited “stable consumer spending” and today’s economic data was benign.
This article was written by Adam Button at www.forexlive.com.
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