Coming Up

Tweet TWEET

German Bunds Fall, 10-Year Yields Rise 7 Basis Points to 1.38%

German government bonds declined after U.S. lawmakers passed a bill that averted spending cuts and tax increases threatening the world’s largest economy, damping demand for the safest assets.

Yields rose as the U.S. House passed a bill undoing income tax increases for more than 99 percent of households, giving a victory to President Barack Obama even as Republicans vowed to fight him in coming weeks for spending cuts in exchange for raising the debt ceiling.

Benchmark 10-year bund yields climbed seven basis points, or 0.07 percentage point, to 1.38 percent at 7:32 a.m. London time. Two-year note yields advanced two basis points to zero percent.

German bonds returned 4.5 percent last year, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.

To contact the reporter on this story: Neal Armstrong in London at narmstrong8@bloomberg.net

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.