Global Bond Yields

Globally, bond yields tend to move together as traders arbitrage by trading the debt of various countries. This past week (as shown below), the yield on the 10-year U.S. Treasury rose sharply while yields on the same maturity in other countries were mixed. Given the poor results of the past week's auctions, and the data from the Treasury International Capital Report, this may be another indicator that the long-awaited rise in rates has started. Investors in bonds need to be cautious.

                                   3/5       3/12     3/19       3/26
10 yr.German             3.16      3.17     3.11       3.15
10 yr. Italy                 3.95      3.96     3.95       3.92
10 yr. UK                  4.06      4.1       3.95       4.04
10 yr. Japan               1.32      1.35     1.37       1.38
10 yr Australia            5.48     5.69     5.68       5.75
10 yr.U.S.                  3.68     3.7       3.69       3.85