German Bunds Extend Decline as ECB Allots $645 Billion in Three-Year Loans

German government bonds extended their drop as the European Central Bank said it allotted 489 billion euros ($644 billion) in three-year loans to banks.

Ten-year German yields advanced seven basis points to 2.03 percent at 10:26 a.m. London time. Two-year note yields rose two basis points to 0.24 percent.

French 10-year bonds rose, pushing the yield down three basis points to 3.08 percent.

The Frankfurt-based ECB awarded 489 billion euros in 1,134- day loans, more than economists’ median estimate of 293 billion euros in a Bloomberg News survey. The ECB said 523 banks asked for the funds, which will be lent at the average of its benchmark rate, currently 1 percent, over the period of the loans. They start tomorrow.

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