German Bonds Head for Second Weekly Decline as Exports Increase

Germany’s government bonds fell, heading for a second weekly decline, as a report showed the nation’s exports (GRBTEXMM) increased in March.

German 10-year yields approached the highest level in four weeks. Exports rose 0.5 percent in March after falling a revised 1.2 percent a month earlier, the Federal Statistics Office in Wiesbaden said. Imports increased 0.8 percent. Data on May 8 showed industrial production in Europe’s largest economy unexpectedly increased in the same month. Italy is scheduled to sell 10 billion euros ($13 billion) of bills.

Germany’s 10-year bund yield rose three basis points, or 0.03 percentage point, to 1.30 percent at 7:16 a.m. London time. The rate has increased six basis points this week and rose to 1.31 percent on May 7, the most since April 11. The 1.5 percent security maturing in February 2023 fell 0.3, or 3 euros per 1,000-euro face amount, to 101.80.

Italy plans to sell 3 billion euros of 219-day bills and 7 billion euros of 12-month debt today. It last sold one-year securities on April 10 at an average yield of 0.922 percent.

German government bonds returned 0.7 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Italian securities gained 5 percent.

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

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