German Bunds Rise as Cyprus Tax Debate Starts; Greek Bonds Slump
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German 10-year government bonds climbed for a fourth day as Cypriot lawmakers began to debate a proposed levy on bank deposits, amid concern they will reject the measure that’s needed to unlock an international bailout.
Benchmark 10-year bund yields dropped to an 11-week low after Cyprus’s President Nicos Anastasiades said the nation’s parliament is likely to vote against the plan, prompting investors to seek the safety of Europe’s highest-rated fixed-income assets. The country’s finance minister submitted his resignation, Market News reported. Greek and Cypriot bonds tumbled, and Spanish securities also fell as investors sold the debt of so-called peripheral nations.