LONDON, March 22 The difference between U.S. and
German government borrowing costs was the lowest it has been in
four months on Wednesday as investors started to have doubts
over promises of a fiscal boost for the world's largest economy.
President Donald Trump is trying to rally support behind his
healthcare bill but investors are worried failure to do so could
portend trouble for promised tax cuts and relaxed regulation
expected to support growth and tighter monetary policy.
As U.S. shares suffered their worst day since Trump's
election in November on Tuesday, 10-year U.S. Treasury yields --
an indicator of the rate at which the government can borrow in
financial markets -- dropped to a three-week low of 2.40
Meanwhile, German equivalents were a tad lower
when European markets opened on Wednesday but within sight of
13-month highs struck just over a week ago. At around 195 basis
points, the gap between the two was the lowest since November.
(Editing by Nigel Stephenson)