German Bunds Extend Drop as Court Ratifies ESM With Conditions

German 10-year bunds extended declines after the nation’s Constitutional Court ratified Europe’s permanent bailout fund, the 500 billion-euro European Stability Mechanism, with conditions.

Germany’s 10-year yield rose seven basis points, or 0.07 percentage point, to 1.61 percent as of 9:23 a.m. London time.

Europe’s biggest economy must make sure its share of the ESM is capped at 190 billion euros, the court said.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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