Germany’s Bonds Jump After Draghi Says Inflation Risks Are Low
This article is for subscribers only.
Germany’s bonds rose, with 10-year yields falling to the lowest level in nine weeks, after European Central Bank President Mario Draghi said inflation was subdued and the debt crisis was starting to hurt the nation’s economy.
Two-year yields dropped by the most since July as German industrial production shrank more than economists forecast and the European Commission halved its 2013 growth estimate for the country. Greek 10-year bonds declined as Prime Minister Antonis Samaras seeks to gain parliamentary approval for austerity measures needed to unlock further bailout funds. Finland’s two-year yields fell below zero for the first time since August.