Gilts and Equivalent Eurozone, U.S. Yields Decline on Stronger Economic Data and Eased Tax Bill Concerns

Gilts and Equivalent Eurozone and U.S. Yields Decline on Strong Economic Data and Eased Tax Bill Concerns

Yields on gilts, along with their eurozone and U.S. counterparts, declined following stronger-than-expected U.S. PMI data released on Thursday and positive U.K. retail sales data on Friday. These economic indicators helped revive investor optimism, easing concerns that had previously pushed yields higher.

Concerns over U.S. President Donald Trump’s tax-cut bill, which had driven up yields on Thursday, have subsided for the moment. According to Deutsche Bank Research analysts, stronger U.S. economic data is supporting the consolidation of U.S. assets by indicating a reduced risk of recession.

Specifically, 10-year gilt yields dropped by around 3 basis points to trade last at 4.730%, according to Tradeweb data. Meanwhile, the 10-year Bund yields dipped 3 basis points to 2.611%, reflecting the broader easing trend in global bond markets.