Germany’s 10-Year Bonds Decline Before Euro-Region Output Report Germany’s government bonds fell before euro-area services and manufacturing data this week that economists said will add to evidence the region’s economy is gaining momentum. Benchmark 10-year yields reached the highest level since March 2012. A composite index of services and manufacturing output rose to 50.9 in August from 50.5 in July, according to the median estimate of 23 analysts in a Bloomberg News survey before the report on Aug. 22. France plans to sell as much as 7.4 billion euros ($9.86 billion) of bills today, while the Netherlands also auctions short-dated securities. Germany’s 10-year bund yield rose four basis points, or 0.04 percentage point, to 1.92 percent at 7:18 a.m. London time, the highest since March 27, 2012. The 1.5 percent security due in May 2023 fell 0.3, or 3 euros per 1,000-euro face amount, to 96.335. Bunds slid last week, pushing yields up by the most since June, as demand for the euro region’s safest fixed-income assets fell. The 10-year rate climbed 20 basis points, the biggest increase since the period ended June 21. German bonds lost 2.3 percent this year through Aug. 16, according to Bloomberg World Bond Indexes. Italy’s securities returned 4.6 percent and Spain’s earned 8.2 percent.
Posted on: Mon, 19 Aug 2013 06:48:51 +0000
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