The following were the yield and basis point (bp) movements of some of the most-watched 10-year bonds this afternoon:
US: 2.90% (+3bp)
UK: 2.86% (+3bp)
Germany: 1.83% (+1bp)
France: 2.48% (+1bp)
Spain: 3.76% (-6bp)
Italy: 3.86% (-2bp)
Japan: 0.67% (+1bp)
Portugal: 5.17% (-13bp)
Greece: 7.75% (-7bp)
Risk aversion, as can be gleaned from the relative performance between yields for long-term bonds issued by the larger developed economies and their Eurozone periphery counterparts, declined once again on Wednesday.
Another way to look at things is from the angle that the United States, the United Kingdom and Germany are well ahead of their smaller peers as regards the point of the economic cycle which they traversing - perhaps in fact helping to pull the others along.
In the periphery the main piece of news came in the form of a successful auction of €1.10bn in Portuguese 1-year bills. The yields on offer fell to their lowest since the end of 2009, no less.
That dragged on Spanish long-term bond yields as well despite the fact that Madrid will on Thursday go to the market cap-in-hand for as much as €5.5bn via the sale of medium and long-term bonds. Public debt typically puts in a poor performance in the sessions preceding a debt sale.
Acting as a backdrop, the Federal Reserve Bank of New York's regional manufacturing gauge jumped higher in January, to a reading of 12.51 points, rising well past the 3.5 expected by analysts.
Market commentary also made much of the World Bank's decision, overnight, to up its forecasts for global growth this year.
To take into account as well, in remarks on Wednesday afternoon European Central Bank (ECB) Governing council member Yves Mersch indicated that most risks [as pertain to the outlook for inflation in the Eurozone] currently under discussion are downside risks. He was not warning of immediate deflation risks or anything such as that. However, he did say he expects inflation to remain "low" for a "prolonged period."
For their part, this is what they had to say today over at Capital Economics on the subject of hypothetical deflation risks in the Eurozone: "the European Central Bank (ECB) is likely to take further policy action, perhaps including the belated adoption of quantitative easing, in an attempt to support the region's fragile recovery and head off deflation risks.
"But while negative inflation may be avoided at the aggregate level, sharp falls in prices in some of the heavily indebted peripheral economies will hinder their fiscal consolidation efforts and maintain the danger of a renewed bout of market instability."
"Surely something at least worth pondering", comments Alex Bueso over at Sharecast.
Lastly, and back in the UK, speaking before the Treasury Select Committee Governor Carney indicated that: "Our general expectation has been for a continuation of current momentum, house-price momentum, and mortgage activity and credit-growth momentum into 2014 before decelerating around the middle of 2015 towards 2016." It is interesting to know what the BoE chief's expectations are in terms of house prices.