German Bunds Lead Decline in Europe Bonds as Manufacturing Grows

European government bonds declined after an industry report showed manufacturing in the region expanded for a fifth month in November, damping demand for the safety of fixed-income assets.

Germany’s 10-year yields climbed the most in three weeks after U.S. factory output rose the most since April 2011. French, Dutch and Austrian securities also declined. Spanish bonds fell after a gauge of manufacturing in the nation based on a survey of purchasing managers was lower than economists forecast. Portuguese two-year notes gained after the nation said it will carry out a bond exchange. Greece’s bonds rallied after Moody’s Investors Service raised its credit rating last week.