Treasuries slide on OPEC deal hopes
United States government bonds traded lower on Wednesday as oil prices soared over 7% on renewed hopes the Organization of Petroleum Exporting Countries (OPEC) will reach a production freeze deal at today's meeting. Saudi Arabia's energy minister Khaled al-Falih said the cartel was moving closer towards the agreement, while his Iranian counterpart Bijan Zanganeh confirmed all OPEC members were ready to compromise in this regard.
Meanwhile, market participants started assigning a slightly lower probability to the Federal Reserve raising interest rates at its meeting on December 14 to 91.7%, compared to yesterday's 93.5%, according to data at CME Group.
The yield on 10-year Treasuries rose to 2.3485% at 2:00 p.m. CET, while the yield on two-year debt climbed to 1.119%. The yield on 30-year debt increased to 2.9811% at the same time, as yields move inversely to bond prices. In London, the yield on benchmark 10-year gilts edged up to 1.377%, while the German equivalent remained flat at 0.221%.