Euro-Area Bonds Extend Selloff as Debt Supply Saturates Market
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Germany’s government bonds declined, extending a selloff that wiped more than $400 billion off the value of global debt in about three weeks, on concern sales from Asia to the U.S. will overwhelm demand for sovereign securities.
Bonds across the euro area reversed earlier gains. Germany allotted 2.5 billion euros ($2.8 billion) of benchmark 10-year bunds and Italy sold 7 billion euros of debt due between 2018 and 2046 on Wednesday. The U.S. is offering a total of $64 billion of Treasuries this week, while Japan and the U.K. will also auction government debt.