German 10-Year Yield Tops 2% as Bonds Selloff Undermines Draghi
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European government bonds dropped, sending German 10-year yields to the highest in 17 months, as the European Central Bank kept the benchmark interest rate at a record-low 0.5 percent amid signs global growth is stabilizing.
Austrian, Finnish, and Dutch 10-year yields also reached the highest in more than a year as France’s borrowing costs rose at an auction today to the most since President Francois Hollande was elected. A U.S. report tomorrow that will show employers increased the pace of hiring in August, according to a survey of economists. German two-year note yields climbed the most in two weeks, even after ECB President Mario Draghi said interest rates will remain low.