German 10-Year Bunds Stay Lower After ZEW Survey, Euro-Area GDP
German 10-year bunds stayed lower after reports showed the euro-area economy contracted in the second quarter and investor confidence in Germany unexpectedly fell for a fourth month in August.
The bund yield rose two basis points to 1.42 percent at 10:06 a.m. London time. Two-year notes were little changed, with the yield at minus 0.044 percent.
Gross domestic product in the 17-nation currency bloc fell 0.2 percent from the first quarter, when it stagnated, the European Union’s statistics office in Luxembourg said today.
The ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, declined to minus 25.5 from minus 19.6 in July. Economists forecast a gain to minus 19.3, according to the median estimate in a Bloomberg News survey.
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