NEW YORK (dpa-AFX) – US government bonds started the new year with price gains. On Thursday, the first day of trading in 2020, the prices of fixed-income securities rose predominantly. In return, the yield on the securities, which is calculated from the market value and the nominal interest rate, fell.
There was no significant news that could explain the price gains of papers perceived as safe. Some market participants spoke of acquisitions after US bonds in interbank trading came under pressure before the official start of trading. Weekly data from the American labor market hardly moved the bond market.
The price gains were limited by the good mood on the stock exchange. Market participants gave two main reasons for this: Firstly, the signing of the partial agreement between the USA and China, which is planned for mid-January, to alleviate the trade dispute.
On the other hand, reference was made to the recent monetary policy easing by the Chinese central bank. The People’s Bank of China slightly reduced the minimum reserve for banks, making it easier for financial institutions to lend. The central bank of the world’s second largest economy loosens its monetary policy in small steps for some time now.
Two-year bonds remained at 100 4/32 points. They paid 1.55 percent. Five-year bonds gained 7/32 points to 100 15/32 points. They paid 1.65 percent. Trend-setting ten-year bonds rose by 16/32 points to 99 points. They paid 1.86 percent. Long bonds with a term of thirty years rose by 1 10/32 points to 100 31/32 points. They paid 2.33 percent./jsl/he
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