Euro Bond Rout Revived by Faster Inflation Amid Spanish Supply
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Government bonds dropped across Europe, pushing German benchmark yields up by the most in almost three years, after inflation accelerated more than economists forecast.
Spanish and Italian 10-year yields also jumped as data showed euro-zone consumer prices rose on an annual basis for the first time in six months. The report will ease deflation concerns among European Central Bank policy makers, one of the threats that prompted them to unleash a 1.1 trillion-euro ($1.2 trillion) quantitative-easing program this year.