Yields and basis point (bp) movements of some of the most-watched 10-year bonds this afternoon:

US: 1.70 (+1.3bp)
UK: 1.85% (+2.5bp)
Germany: 1.46% (-1.6bp)
France: 2.244% (+0.4bp)
Spain: 5.616% (-5.4bp)
Italy: 4.959% (-3.4bp)


Bond markets in the US re-opened on Wednesday following Hurricane Sandy with yields on 10-year benchmark Treasuries increasing on concerns that the storm's financial impact could temper growth expectations this year.

On the stock market, insurance companies Stateside were trading firmly lower as investors assessed Hurricane Sandy's damage.

Market analyst Craig Erlam from Alpari said this afternoon: "It is too early to tell at this point what the cost of the damage will be to insurance companies, but early estimates suggest it could be up to $15bn, severely damaging fourth-quarter profits."

Spanish bonds advanced today after the country's current account surplus widened to its highest level in euro-era history: Spain registered a current account surplus of €1.24bn in August, up from €500m the month before.

Spanish government sources told local radio station SER that a request for international aid should not be expected this year, in perhaps the most specific reference to the timing of a full bailout request.

Meanwhile, Spanish Finance Minister Luis De Guindos has said that Spain could close the year with a more favourable gross domestic product (GDP) than expected.

During an appearance in Congress, De Guindos said that Spain's growth could be somewhat better than the 1.5% contraction expected and that the government's estimates have always been on the conservative side.

German yields declined today after the nation issued €1.7bn in 30-year bunds. The notes were sold at an average yield of 2.34%, higher than 2.17% at the last sale, but the bid-to-cover ratio strengthened from 1.5 to 2.7.

Bc

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