Gold prices edge higher on raised Fed rate cut hopes
Investing.com -- The U.K. March 2030 gilt, set to be auctioned on Tuesday, is trading at a historically low price level. According to analysts at RBC Capital Markets, this low price could attract investors seeking relative value at the upcoming auction.
However, the appeal of this bond may be diminished due to the Debt Management Office’s plans to sell this bond again this quarter on March 5. The analysts expressed their lack of enthusiasm for the bond due to its heavy tapping schedule ahead.
In related news, Eurozone 10-year government bond yields have seen an increase, following a similar trend in U.S. Treasury yields.
This comes after President Trump decided to delay tariffs on Mexico and Canada for a month after discussions with the leaders of both countries. The ten-year eurozone bond yields increased about 3 basis points across the board, with the Bund yield rising to 2.417%, as stated by Tradeweb.
Eurozone rates are expected to remain sensitive to growth risks, according to ING’s Padhraic Garvey and Michiel Tukker. They noted that the front end might find itself even lower in the near term.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.