German Bonds Climb as Expanding Political Risks Spur Safety Bid

Photographer: Alessia Pierdomenico/Bloomberg
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German government bonds rose the most in a week as investors sought safer assets amid concern that the rise of anti-austerity parties in the euro area would deepen political turmoil across the region.

In Greece, the epicenter of Europe’s sovereign-debt crisis, sliding bond prices pushed two-year note yields above 25 percent. Spain’s securities fell relative to German bunds for a third day after voters in local elections on May 24 turned away from the political establishment and alternative candidates proposing greater spending made unprecedented advances.