German 10-Year Bunds Hold Advance Before Greece Auctions Debt

German government bonds held an advance from yesterday before Greece auctions 625 million euros ($774 million) of six-month bills.

Germany’s two-year note yield was within four basis points of a record low. Similar-maturity Italian and Spanish bonds jumped yesterday amid speculation the European Central Bank will buy shorter-dated securities in an attempt to stem the region’s debt crisis.

The German 10-year bund yield was little changed at 1.39 percent at 7:46 a.m. London time, after dropping three basis points yesterday. The 1.75 percent bond due July 2022 traded at 103.28.

The two-year note yield was at minus 0.06 percent. It reached minus 0.097 percent on Aug. 2, the least since Bloomberg began tracking the data in 1990.

German debt returned 3.5 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Spanish securities fell 3.2 percent and Italy’s debt rose 9.1 percent.

To contact the reporters on this story: Lucy Meakin in London at lmeakin1@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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