Spain’s 10-Year Bonds Rise With Italy’s as Emerging Markets Gain Spanish 10-year government bonds advanced for a third day as a rally in emerging-market currencies boosted demand for higher-yielding securities. Spain’s 10-year yields approached the lowest level in more than seven years. Developing-economy currencies rose, led by the lira’s biggest jump since 2008 after Turkey boosted interest rates to stem capital outflows. Germany’s 10-year government bonds fell for a third day as a report showed a gauge of the nation’s consumer confidence will rise to the highest in 6 1/2 years in February. Germany is scheduled to sell 5 billion euros ($6.8 billion) of debt maturing in February 2024 today. Spain’s 10-year yield dropped three basis points, or 0.03 percentage point, to 3.67 percent at 8:22 a.m. London time after declining to 3.64 percent on Jan. 20, the least since September 2006. The 4.4 percent security due in October 2023 rose 0.225, or 2.25 euros per 1,000-euro face amount, to 105.845. The yield on similar-maturity Italian bonds fell three basis points to 3.82 percent. The rate on German bunds maturing in August 2023 rose one basis point to 1.69 percent. Germany sold the securities due in August 2023 on Nov. 27 at an average yield of 1.69 percent, compared with 1.71 percent at a previous auction on Oct. 30. An index of German consumer confidence will climb to 8.2 next month, the highest since August 2007, from a revised 7.7 in January, Nuremberg-based GfK AG said. Spanish bonds returned 2.6 percent this year through yesterday, Bloomberg World Bond Indexes show. Italy’s returned 1.5 percent and Germany’s gained 1.4 percent.
Posted on: Wed, 29 Jan 2014 08:44:11 +0000
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