Bund Yield 3 Basis Points From Record Low Before Italian Auction

German 10-year government bond yields were within three basis points of a record low as Italy prepared to sell as much as 6.25 billion euros ($7.8 billion) of five- and 10-year debt.

Thirty-year German securities held a five-day advance. Bunds headed for their biggest monthly gain this year before a report that economists said will show economic confidence in the euro region fell to the least since 2009.

German 10-year yields rose one basis point, or 0.01 percentage point, to 1.37 percent at 7:30 a.m. London time, after falling to 1.345 percent yesterday, the least on record. The 1.75 percent security due in July 2022 slipped 0.07, or 70 euro cents per 1,000-euro face amount, to 103.58.

The 30-year yield was at 1.92 percent.

German bonds maturing in more than a year returned 2.2 percent this month, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. That’s the most since they gained 3.1 percent in December. Italian securities lost 1.7 percent, the indexes show.

-- Editor: Paul Dobson

To contact the reporters on this story: David Goodman in London at dgoodman28@bloomberg.net; Keith Jenkins in London at kjenkins3@bloomberg.net

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

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