▸ Global government bonds lose ground after four-week rally
▸ Gold prices move higher to near a recent record peak
▸ Dollar bucks two days of selling to register gains on index against rivals
Global bond markets lost some ground yesterday after a rally driven by growing expectations of US interest rate cuts.
A fall in price for 10-year Treasury bonds — the benchmark for global asset prices — pushed its yield up 6 basis points to 4.07 per cent as traders sold the debt.
That is still down from a peak just below 4.50 per cent in July after a fourweek rally for US government bonds.
Yields on 10-year UK gilts rose 5bp to 4.67 per cent while those on Germany's benchmark Bunds were up 6bp to 2.71 per cent.
Pooja Kumra, a rates strategist at TD Securities, said the moves reflected some “profit-taking” among bond investors ahead of next week's meeting of the US Federal Reserve when the central bank is widely expected to make a quarter-point cut to its benchmark policy rate.
