German Bunds Decline After Business Confidence Beats Estimates
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German government bonds fell after a report showed business confidence in Europe’s biggest economy exceeded economist estimates, bolstering expectations that the European Central Bank will continue raising interest rates.
The drop sent the 10-year bund yield up from a four-month low. The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, held at 114.2 in May, after economists forecast a decline to 113.7. Portuguese 10-year yields surged to a record high on concern Europe’s debt crisis is worsening.