Treasury yields rise and prices fall on rise in European bond yields

Treasury yields rise and prices fall on rise in European bond yields

The yield on the 10-year Treasury jumped 7 basis points to 1.84% today, February 3. The move was in concert to higher yields on United Kingdom and German bonds after the Bank if England and the European Central Bank signaled worry about rising inflation at the central banks meetings. The key move was the rise in the yield on the German 10-year Bund. The yield on that maturity had been below 0% until hi week when it jumped to a positive 0.15%.

Treasury yields rise and prices fall on rise in European bond yields

European Central Bank decides to split the difference on ending bond purchases

At its meeting today the European Central Bank decided to buy fewer bonds each month but for more months. Monthly purchases will be cut to 30 billion euros ($35 billion) from 60 billion euros beginning in January. But the bank will extend its bond purchases until September. Some observers had through the central bank would end purchases in January or March.