Bund Yield Falls to Record on Stocks, Merkel; Italy Bonds Slump
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Germany’s bunds advanced, with two-and 10-year yields dropping to record lows, as tumbling bank stocks drove down equity indexes and boosted demand for the euro region’s safest assets.
Italy’s 10-year bonds fell for an 11th day, a record for the euro era, and two-year Italian notes yielded above 4 percent for the first time in almost a month an speculation a lack of will to implement fiscal reforms may lead to rating downgrades. Bunds gained for a third day after Chancellor Angela Merkel’s party was defeated in her home state, stirring speculation she’ll be less engaged in stemming the debt crisis amid voter anger. Greek two-year yields surpassed 50 percent.