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German Yields Fall Most in Two Weeks as Recession Deepens

Germany’s bonds rose, with two-year yields falling the most in almost two weeks, as data showed the euro-area recession deepened more than economists predicted, spurring demand for the region’s safest assets.

Benchmark 10-year bund yields dropped from within a basis point of the highest level in more than a week as separate reports showed gross domestic product in France and Germany also declined. French and Dutch bonds advanced as European Central Bank Vice President Vitor Constancio said that negative deposit rates are “always possible” if needed. The European Financial Stability Facility sold 1 billion euros of bonds maturing in April 2037 through banks.