Bonds Today

The better appetite for risk today and supply concerns are weighing on sovereign bond markets. Japanese and European 10-year yields are 1-2 bp higher today. The US Treasury will sell $118 bln of coupons this week. While 10-year yield spreads within the euro zone today are largely steady, pressure on Greece remains evident in the 2-year sector, where its yield has risen another 37 bp to 5.13%. It is trying to place, through syndication, 5-year paper today. Some pressure is also evident on Portugal’s 2-year bon, which is up 4 bp.