The following were the yield and basis point (bp) movements of some of the most-watched 10-year bonds this afternoon:
US: 2.86% (+7bp)
UK: 2.88% (+4bp)
Germany: 1.94% (+4bp)
France: 2.52% (+2bp)
Spain: 4.47% (+5bp)
Italy: 4.35% (0bp)
Japan: 0.75% (+1bp)
Portugal: 6.70% (+2bp)
Greece: 10.30% (+0bp)
The better part of the day saw yields on government debt for the G-5 economies move higher for the most part, while those on the periphery headed lower. That changed in the afternoon after the release of stronger than expected economic data Stateside, with almost all the major sovereign bond benchmarks moving lower in price terms.
Late in the afternoon the ISM institute released a stronger than expected result for its US manufacturing sector purchasing managers' survey [PMI], led by a large rise in the new orders component.
America is not alone. JP Morgan's global manufacturing sector PMI also rose to its highest since mid-2011, to the 51.7 point mark from 50.8 in June.
The move higher in yields is understandable in those terms as a world-wide phenomenon. Interestingly perhaps, bonds seemed barely reactive to the missile-scare this morning, when it was reported that ballistic "objects" had been launched towards the Eastern Mediterranean nor to news that President Obama is winning over some key Congressmen to the cause of limited strikes against targets inside of Syria.
Not to be lost sight of, all of the above transpired ahead of Friday's monthly US employment report, which may yet influence expectations for the Fed's next meeting heavily.
Meantime, and in the Eurozone, Italian bonds may have found some comfort in the positive remarks out of strategists at Goldman Sachs, speaking on Bloomberg TV, on the political situation in Italy, with the current administration now expected to survive until next year.
Spanish long-term bonds were rather volatile, having dropped as low as 4.38% at one point in the session. The country's unemployment figures for August did indeed surprise on the downside this morning, but only by a tad (Announced: 0.0; Forecast: +7,000).
More significantly, early in the morning the country's economics minister confirmed possible foreign interest in some regional state-owned lenders, such as Nova Caixa Galicia and Catalunya Banc.
However, investors may have been wary ahead of Thursday's Spanish Treasury debt auction (and ECB meeting) as well as - possibly - remaining doubts in some quarters over the country's medium-term prospects.
Lastly, and as regards Ireland, Germany's Handelsblatt reported the Eurozone may grant it a standby credit as a safety measure for when it returns to financial markets in January.
Concerning these instruments, this is what Barclays Research had to say: "The data so far suggest that the government deficit is likely to hit its General Government deficit target for 2013 of 7.4% of GDP, as laid out in April's Stability Program Update [...] but hitting the targets in the coming years may be more challenging as the size of the adjustment required is larger and the easier expenditure cuts/tax increases have already been implemented."