U.S.-German Yield Gap Widest Since January on Policy Divergence
- Employment growth keeps wagers alive on Fed rate increase
- Global yields to aid U.S. bonds even as Fed raises rate: Gross
WASHINGTON, D.C. - October 27: A general view of the Federal Reserve Building in Washington, United States on October 27, 2014.
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The extra yield U.S. 10-year Treasuries offer over their German peers widened to the most since January as U.S. economic data kept alive prospects of the Federal Reserve raising interest rates this year, which contrasts with the European Central Bank’s accommodative stance.
Treasuries fell a second day Monday, with the 10-year note yield rising to the highest level in a month. U.S. government securities dropped Friday after a Labor Department report showed that the nation’s jobs growth was strong enough to maintain wagers of the Fed tightening policy this year.