LONDON (Reuters) – Euro zone government bond yields fell on Tuesday after U.S. President Donald Trump fired Secretary of State Rex Tillerson, injecting a fresh dose of volatility into world markets.
Data showing U.S. inflation slowed in February also reassured investors, however, putting downward pressure on bond yields on both sides of the Atlantic.
Treasuries - Direction - Fear - Tillerson - Removal
“Treasuries reversed direction on the fear that Tillerson’s removal will give the nationalists greater power within the White House over the globalists,” said Investec economist Philip Shaw.
Trump said he had replaced Tillerson with Central Intelligence Agency Director Mike Pompeo, and had tapped Gina Haspel to lead the CIA.
US - Treasury - Yield - Basis - Points
The U.S. 10-year Treasury yield fell as much as 3 basis points on the Tillerson news and was last trading at around 2.85 percent , also held down by news of slowing inflation.
In Europe, bond yields fell 1-3 basis across the board.
Germany - Government - Bond - Yield - Bps
Germany’s 10-year government bond yield fell 2 bps to around 0.61 percent , its lowest level in just over a week, before steadying at 0.62 percent.
Europe’s STOXX 600 fell a hefty 1 percent as the session drew to a close. The pan-European banks...
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