February 15, 2018 / 7:53 AM / 10 months ago

US/Germany 10-year bond yield spread at widest since April 2017

LONDON, Feb 15 (Reuters) - The gap between German and United States 10-year borrowing costs reached its widest level since April 2017 on Thursday after a higher-than-expected inflation print in the U.S. led to a sharp sell-off in U.S. Treasuries.

The yield on 10-year U.S. Treasuries, which moves inversely to price, hit a fresh four-year high of 2.93 percent in early European trade, after data on Wednesday showed that consumer prices rose more than expected in the world’s largest economy in January.

German 10-year government bond yields also rose after the release of the data — bond markets in the world’s major developed economies tend to track each other as many investors switch between them — but not quite to the same extent.

The “transatlantic spread” between U.S. and German 10-year government bond yields opened Thursday at 216 basis points, a level last seen ten months ago. (Reporting by Abhinav Ramnarayan, Editing by Helen Reid)

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