German 10-Year Yield Falls Below 3%; IMF May Withhold Greece Aid
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German government bonds rallied a Luxembourg Prime Minister Jean-Claude Juncker said the International Monetary Fund may not release its portion of aid for Greece next month, boosting demand for the safest assets.
The price gains pushed the yield on the 10-year bund below 3 percent for the first time in four months, while the two-year note yield slipped to a two-month low. Juncker told a conference in Luxembourg he didn’t think the IMF, European Union and European Central Bank were confident Greece could honor its debt commitments over the next 12 months, one of the “rules” governing whether aid funds would be released. Greek, Spanish and Portuguese bonds held gains.