Bunds Slide as ECB Provides Dollars to Banks; Greek Bonds Surge
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German two-year notes slid for a fourth day as the European Central Bank said it will lend dollars to euro-region banks to ensure they have enough of the U.S. currency, damping demand for safer assets.
Ten-year bund yields climbed above 2 percent for the first time since Sept. 5 as stocks gained after French President Nicolas Sarkozy and German Chancellor Angela Merkel said yesterday they’re “convinced” Greece will remain in the currency union. Greek bonds surged as investors trimmed bets the nation will default. Spain’s 10-year yields approached a one-month high after the country sold 3.95 billion euros ($5.4 billion) of debt.