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2010.11.0512:48:00UTC+00German Bund Prices settled down on a Stronger Than expected US Jobs Data

News:

  • German bund prices edged lower on Friday, on a stronger than expected US non-farm payrolls data,
  • The December bund futures ended at 130.25, down by 0.34 ticks on the day, after dipping for 65 cents to an intraday low at 129.95.
  • The bund yield erased early losses to close 4 bps up at 2.42 pct, while the 2-yr Schwartz yield gained 0.6 bps to stand at 0.924 pct.
  • The 10-year Portuguese/German yield spread narrowed 9 bps to 425 bps, nearing its euro lifetime time high of 440 bps.
  • The Irish/German 10-year yield spread hit a new euro lifetime high at 553 bps before easing back to 545 bps, following Ireland's announcement of plans of $6 bln spending cuts in 2011.
Quotes:
  • "But it was mostly the 10-year Bund that got hit, with the wings on the two-year and ultra-long issues seeing far less upward pressure on yields," Phil Jordan, a bonds trader at Monument Securities said.
  • "What's been happening is that as the periphery remains in trouble, investors put their money specifically in the shortest bonds, hence the two-year," Phil Jordan added. 

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