Bonds & Rates
Home›Bonds & Rates›Government Bonds›US 10-year yields slip near 5.25% as safe-haven demand…
US 10-year yields slip near 5.25% as safe-haven demand rises
The US 10-year yield was still near levels not seen since 2002, while France’s 10-year OAT yield jumped past 4.9% after a sharp quarterly increase and a deficit plan drew scrutiny.
US 10-year Treasury yields edged down to around 5.25% on Friday, retreating from multi-decade highs as concerns over France’s fiscal and political stability boosted demand for safe-haven assets, according to FXStreet.
Despite the slight pullback, US yields remained near levels not seen since 2002, with the article pointing to persistent expectations for further Federal Reserve policy tightening.
FXStreet also cited marked volatility in European government bonds, led by a surge in French yields. France’s 10-year OAT yield moved above 4.9%, its highest level since July 2002, after the country’s minority government introduced a budget deficit reduction plan.
The source said France’s fiscal watchdog warned that underlying economic forecasts were overly optimistic. It added that Deutsche Bank analysts argued that financial stress is increasingly fueling doubt about how aggressively central banks such as the ECB could hike rates, as tighter financial conditions are starting to do part of the ECB’s work.