German Bonds Advance as Reports Show European Slowdown Deepening
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Germany’s government bonds rose for a third week as data showed the economic slowdown is spreading to Europe’s largest economies, underpinning the case for the region’s central bank to cut interest rates to boost growth.
Ten-year bund yields dropped to the lowest level in two months yesterday as data showed industrial production slumped in France, Italy and Finland. European Central Bank President Mario Draghi said the euro-area economy was expected to “remain weak” after policy makers kept the main refinancing rate at a record low of 0.75 percent on Nov. 8. German two-year note yields were below zero every day this week. Spain’s bonds fell as optimism waned that the nation will ask for a bailout.