German Bond Gains Push 10-Year Yields to 13-Month Low on Iraq

Germany’s 10-year government bonds advanced for a third day, pushing the yield to the lowest in 13 months, as escalating violence from the Middle East to Ukraine fueled demand for the euro area’s safest securities.

Bunds extended gains, rising with Treasuries, as a report showed the U.S. economy contracted in the first quarter by the most since the depths of the last recession, supporting the case for central banks to maintain stimulus measures that have supported bond prices. They outperformed their Italian counterparts as Italy began selling about 19 billion ($25.9 billion) of debt over three days. Spanish 10-year bonds rose while Belgian and Irish 10-year yields fell to records.