Long U.S. Treasury Yields Ease; Fed Rate Cut Isn't Imminent
0606 GMT – German Bunds are likely to stabilize further this week, with buyers entering at levels about 2.70% for the 10-year Bund, say Commerzbank Research's Hauke Siemssen and Erik Liem in a note. 'In Bunds, 10-year yields got repeatedly bought above 2.70%, with the steepening mostly driven by the weak ultra-long end,' the rates strategists say. Shaky risk sentiment and subdued purchasing manager indexes are likely to provide support, they say. This would also cap a rise in yields. Flash estimate purchasing managers' data for July for France, Germany and the eurozone are due on Thursday, prior to the European Central Bank's interest-rate decision later that day. The 10-year German Bund yield closed at 2.699% last Friday, according to Tradeweb. (emese.bartha@wsj.com)
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