German Bonds Rise as Juncker Proposes ‘Reprofiling’ Greek Debt

German bonds rose as Luxembourg Prime Minister Jean-Claude Juncker’s proposed “reprofiling” of Greek maturities failed to ease concern that Europe’s debt crisis is worsening, bolstering demand for the least risky securities.

Greek bonds closed lower after initially gaining on speculation Juncker’s proposal would limit losses for private bondholders. Portuguese bonds fell after yesterday’s decision by European finance chiefs to endorse a 78 billion-euro ($111 billion) bailout for the Iberian nation. Bunds were also lifted as data showed investor confidence in Europe’s largest economy fell for a third month, pushing 10-year yields to within two basis points of a two-month low.