German Bunds Rise as Bank Health Concern Spurs Haven Demand
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German 10-year notes advanced for a second day as concern some European banks are struggling to overcome the region’s debt crisis boosted demand for the perceived safety of benchmark government debt.
The gains pushed the 10-year bund yield down by the most in almost two weeks after the Wall Street Journal said European stress tests of major banks understated some lenders’ holdings of potentially risky government debt. German factory orders unexpectedly slid in July, indicating the recovery of Europe’s largest economy may be faltering. The MSCI World Index of shares fell for the first time in five days, declining 1 percent.