Wednesday's developments in the bond market showed increasing interest in the strong northern European economies.
The yield on UK ten-year government bond rose nine basis points to 1.60 percent, after the national statistics office in London announced the largest decrease in newly registered unemployed for two years. The number of newly registered unemployed fell by 15,000 to 1.57 million.
Especially Portugal pulled away on Wednesday's bond market, after the announcement from Germany, that the euro rescue fund will include German billions; Yield on Portugal's ten-year government bond fell by almost 20 basis points to 9.64 per cent.
The big fluctuations were not surprising from Greece. Here the ten-year rate fell by 93 basis points to 24.14 per cent.
Next item on the agenda bond investors will be the result of rate-setting meeting of the Fed, which will be published tomorrow. According to a Bloomberg survey of economists the consensus is that chairman Ben Bernanke will announce a new round of quantitative easing (QE3) to stimulate the U.S. economy.
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