German Government Bonds Rise on Growing Demand for Safest Assets
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German 10-year bunds advanced as investors, concerned that some so-called peripheral nations such as Ireland will have to restructure their debt, sought refuge in the euro-region’s safest assets.
Irish 10-year bonds tumbled yesterday, with the yield soaring 67 basis points, driving the premium investors demand to hold the debt instead of German bunds to a record. The Portuguese-German spread also widened to an all-time high. LCH Clearnet Ltd. demanded its clients place a larger deposit when trading Irish securities. French Finance Minister Christine Lagarde said yesterday investors must share the cost of restructuring sovereign debt. Irish and Greek bonds rose today.