German Bunds Rise on Euro-Area Discord; Spanish Bonds Advance
This article is for subscribers only.
German bonds rose, with 10-year yields dropping to the lowest in more than a week, as discord among European leaders over ways to bring an end to the debt crisis boosted demand for the region’s safest assets.
Benchmark bunds extended their rally from last week as German Chancellor Angela Merkel and French President Francois Hollande clashed two days ago over a timetable for starting joint oversight of Europe’s banks. Spanish bonds gained amid speculation the government will request a bailout to fix its finances, ending weeks of deliberation. The spread between Dutch 10- and 30-year bonds widened after the government revised some rules for pension funds’ liabilities.