Germany’s 10-year government bonds rose for a third day as a report showed a gauge of consumer confidence in Europe’s largest economy will decline for the first time in eight months in September.
Benchmark 10-year yields approached a two-week low after market-research company GfK SE said its consumer-sentiment index, based on a survey of about 2,000 people, will drop to 6.9 from 7 in August. Economists forecast a gain to 7.1, according to the median estimate in a Bloomberg News survey. Italy is scheduled to sell 8.5 billion euros ($11.4 billion) of six-month bills as Prime Minister Enrico Letta’s government meets to approve the reduction of a real-estate tax.
Germany’s 10-year bund yield dropped two basis points, or 0.02 percentage point, to 1.83 percent as of 7:19 a.m. London time. The rate fell to 1.80 percent on Aug. 15. The 1.5 percent security due in May 2023 rose 0.16, or 1.60 euros per 1,000-euro face amount, to 97.10.
Italy last sold 184-day bills on July 29 at an average yield of 0.799 percent, compared with a rate of 0.599 percent at a previous auction on July 10.
German bonds lost 2.1 percent this year through yesterday, according to Bloomberg World Bond Indexes. Italian securities returned 3.3 percent, while Spain’s earned 7.6 percent.