German Bonds Fall as Euribor Futures Drop on ECB Repayment Bets
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German government bonds fell, with two-year yields rising to the highest since June, on speculation financial institutions will begin paying back loans from the European Central Bank, pushing up overnight borrowing rates.
Futures contracts on the three-month euro interbank offered rate, or Euribor, dropped and securities from Austria, France and the Netherlands also slid. French 10-year bond yields rose to the highest in more than two months as borrowing costs increased at an auction. Repayments of loans taken from the ECB’s Longer-Term Refinancing Operation will be possible from the end of this month.