US government bonds built on recent gains and technology shares lifted Europe’s main equity gauge as investors moved further away from expecting the Federal Reserve to swiftly rein in its pandemic-era support for financial markets.
The yield on the benchmark 10-year US Treasury bond, which moves inversely to its price, fell 0.02 percentage points to 1.348 per cent, hitting fresh four-month lows. Germany’s equivalent Bund yield dropped by the same amount to minus 0.283 per cent, its lowest since mid-April.
The 10-year Treasury yield approached 1.8 per cent in March, as the price of the debt was depressed by fears that the world’s most influential central bank would respond to a speedy US economic recovery and surging inflation with a rapid round of interest rate increases.