German government bonds were little changed before a report that economists said will show euro-area services and manufacturing contracted for a 15th month in April.
The 10-year yield was about two basis points from the lowest level in almost nine months. A composite index of activity in both industries based on a survey of purchasing managers held at 46.5, according to the median estimate of 26 analysts in a Bloomberg News survey. A reading below 50 indicates contraction. Spain is scheduled to auction as much as 3 billion euros ($3.9 billion) of 84- and 273-day bills today.
German 10-year bunds yielded 1.22 percent as of 7:19 a.m. London time. The rate slid to 1.20 percent on April 5, the lowest level since July 24. The price of the 1.5 percent security due in February 2023 was at 102.53.
German bonds returned 0.9 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.