Market Sentiment

Bond traders seek safety – in Sweden and Germany

The global bond market jitters are easing slightly on Friday, but it is clear that investors are seeking safe havens in countries with stable finances, including Sweden.

France, with its budget issues and high national debt, has emerged as a risky investment destination. Investors are less keen on French government bonds, causing long-term yields to rise to compensate for the increased risk. Meanwhile, yields are falling in Sweden and Germany—countries considered more economically stable—reports DI.

The spread between French and German ten-year government bond yields is at its highest level since...

Yields plunged following dovish signal from top Fed official

The bond market turmoil in the US subsided after Fed Governor Philip Jefferson signaled on Thursday evening that further interest rate hikes might be delayed, Reuters reports.

"Any future adjustments to monetary policy should be determined through a careful assessment of the evolution of the data, the outlook, and the balance of risks," he said in a speech at the University of Virginia’s Darden School of Business.

Earlier in the day, the ten-year government bond yield had climbed to its highest level since 2002. The market interpreted the signal as "dovish," and risk appetite for both bonds and equities returned. Following Jefferson's speech, the ten-year yield reversed sharply downward, while Wall Street indices turned positive. euro crisis in 2011, at 1.52 percent.