European Bonds May Extend Losses as Sovereign-Debt Supply Rises
- Gauge of region's inflation outlook dropped to six-month low
- BNP Paribas says it's too early to re-enter long positions
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After a volatile week in global markets, traders may be reluctant to increase their holdings of euro-area government bonds as debt supply surges and before the European Central Bank responds to the turmoil kindled in China.
Investors last week turned pessimistic on German bonds, sending the 10-year bund yield rising the most in almost three months. Spanish and Italian securities also declined. BNP Paribas SA said it’s too soon to re-enter positions that bet on prices in sovereign-debt markets rising. Austria, Belgium, Germany, Spain and France all will auction securities next week, which tends to suppress prices.