Bunds Rise on French Backing for German Rejection of More Aid
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German government bonds climbed, snapping a two-day drop, as France backed Germany in refusing to add to the European Union’s 440 billion-euro ($580 billion) rescue fund and rejecting joint euro-area debt securities.
The gains sent 30-year German yields down from the highest in almost seven months. Dutch and Belgian bonds also rose as European Central Bank Governing Council member Nout Wellink yesterday said he doesn’t favor joint bond issuance for the euro region, while the ECB today said emergency liquidity measures will stay “as long as necessary.” Irish bonds were little changed after Fitch Ratings downgraded the nation’s credit.