Investors Dump Govt Bonds
London, June 27: | Updated: Jun 28 2003, 05:30am hrs
Investors steadily deserted government bond markets, adding to the previous days hammering and raising the question of whether a three-year bond bull market was ending. Yields on 10-year euro zone government debt, British gilts and Japanese paper all rose as bonds were sold off. US treasury yields were slightly lower but only after hitting a six-week high. The immediate trigger for the selloff which saw European yields post the biggest one-day jump in three months was the US Federal Reserves move to cut rates by a quarter of a point instead of the expected half. It also sounded a more positive note about the US economy. But the relish with which investors have fled debt markets seen by some as irrational has left some wondering whether the long run of climbing bond prices and sinking yields that has accompanied weak economies and falling bourses is at an end.