European Bonds Decline With Global Peers on Yellen Rates Signal
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European government bonds slumped with counterparts from the U.K. to Australia after Federal Reserve Chair Janet Yellen signaled that U.S. interest rates may rise by the middle of next year.
German bunds dropped for a fifth day after Yellen indicated yesterday the central bank’s bond-buying program will wind down by year-end as forecast while a rate increase may follow in about six months. Spain’s securities fell along with their Italian peers even as borrowing costs at a sale of five-year Spanish debt declined to a record. France’s 10-year yields climbed to the highest level in a week as the country auctioned 8 billion euros ($11 billion) of notes.