German Government Bonds Pare Drop After Factory Orders Decline

German government bonds pared their decline after a report showed factory orders unexpectedly fell as the slowing global economy cut foreign demand.

The yield on the 10-year bund was one basis point, or 0.01 percentage point, higher at 1.79 percent at 11:05 a.m. London time, after earlier to 1.80 percent.

Orders, adjusted for seasonal swings and inflation, fell 2.7 percent from December, when they gained 1.6 percent, the Economy Ministry in Berlin said today. Economists forecast a 0.6 percent increase, according to the median of 37 estimates in a Bloomberg News survey.

Italian 10-year bonds stayed higher, with the yield dropping eight basis points to 4.99 percent.

To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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