Global key rates review

Bonds are overall remaining well bid heading into much anticipated FOMC meeting in September. As of now, as per implied probability there are now 28% probability that FED will hike rates in September, down from above 50% in August.

US -

• US 2 year yield after rallying yesterday, down over haven buying by -3.78%, trading at 0.705%.
• Similarly 5 year yield is down -2.75%, trading at 1.5045%.
• 10 year yield is down -2.31%, trading at 2.17%

Germany -

German bonds are considered as European benchmark.

• German 2 year yield after rising yesterday, dropped today. Down -1.34% and trading at -0.227%.
• On the contrary, German 10 year yield is down -1.44%, trading at 0.685%.

UK -

• UK yields are sharply down over strong buying into safe haven. UK 2 year yield is down -5.80%, trading at 0.601%.
• UK 5 year yield is down -3.75%, trading at 1.258%.
• UK 10 year yield is down -2.72%, trading at 1.822%.

FED hike bets have kept treasuries at high yield going into FOMC.