Europe's Already Bleak Outlook Shields Bonds From Market Turmoil
- German 10-year bunds fall for first time since start of 2016
- Bonds extend drop as China suspends rule that roiled markets
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European government bond traders are already so used to bad news that the latest turmoil in Chinese markets, which reverberated through global stocks and currencies, failed to support the region’s debt.
German 10-year bunds dropped for the first time this week as investors remained cautious of pushing yields to new lows and 12 billion euros ($13 billion) of fresh supply came from France and Ireland. Euro-zone debt extended its declines after China’s securities regulator suspended a stock circuit-breaker that has hurt global equities.