Entering text into the input field will update the search result below

Tradeweb Government Bond Update - February 2021

Tradeweb profile picture


  • Amid ongoing debates about fiscal and monetary policy in February, global sovereign debt markets experienced a widespread sell-off for the second consecutive month.
  • In Japan, the 10-year government bond yield climbed 11 basis points to finish at 0.16%, its highest closing point since January 2016.
  • Minutes from the Federal Reserve's latest meeting confirmed the central bank's commitment to using its full range of tools to achieve its goals of maximum employment and inflation at the rate of 2% over the longer run.

Amid ongoing debates about fiscal and monetary policy in February, global sovereign debt markets experienced a widespread sell-off for the second consecutive month. Ten-year government bond mid-yields increased across the board, with those for Australia climbing by more than 60 basis points to 1.72%, their highest closing value since early May 2019. At its February meeting, the country's central bank decided to extend its bond purchases by an additional AUD 100 billion, when the current quantitative easing program is completed in mid-April.

The UK 10-year Gilt yield also saw a sharp rise of nearly 50 basis points to end the month at 0.82%. The Bank of England's Monetary Policy Committee voted unanimously to maintain interest rates at 0.1% and the total target stock of asset purchases at GBP 895 billion. UK GDP shrank by a record 9.9% last year, the largest annual decline on record. Meanwhile, Germany's 10-year Bund yield still finished February in negative territory at -0.26%, despite an increase of 26 basis points. According to revised figures from the Federal Statistical Office (Destatis), the country's economy contracted by 4.9% in 2020, slightly better than a preliminary estimate of a 5.3% drop.

However, the largest yield move in the Euro area came from the Irish 10-year benchmark note. Beginning the month in negative territory at -0.27%, its mid-yield rose 36 basis points to end at 0.09%. Data released by the European Commission showed that Ireland was the only EU economy to grow in 2020, expanding by 3% compared to an average fall of 6.3% in the European Union and 6.8% in the Euro area, respectively. Italy's 10-year bond yield saw the smallest move among its EU counterparts, increasing by nearly 11 basis points to close at 0.75%. Mario Draghi was sworn as the country's new prime minister on February 13, after securing backing across political groups.

This article was written by

Tradeweb profile picture
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 60 countries. In an average trading day, Tradeweb facilitates more than $570 billion in notional value.

Recommended For You

Comments (1)

Inflation harms not helps the economy.
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

Related Stocks

SymbolLast Price% Chg
iShares 20+ Year Treasury Bond ETF
ProShares UltraShort 20+ Year Treasury ETF
iShares 7-10 Year Treasury Bond ETF
iShares TIPS Bond ETF
iShares 1-3 Year Treasury Bond ETF

Related Analysis

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.