German Bunds Little Changed Before Business-Confidence ReportLucy Meakin and David Goodman
German government bonds were little changed before a report that economists said will show an index of business confidence in the euro-region’s largest economy fell for a second month in April.
The German 10-year yield was about eight basis points from the lowest in almost nine months. An index of business climate index, based on a survey of 7,000 executives, declined to 106.2 from 106.7 in March, the Ifo institute in Munich will say today, according to the median estimate of 44 analysts in a Bloomberg News survey. Germany is scheduled to sell 2 billion euros ($2.6 billion) of 30-year bunds today, while Italy auctions inflation-linked and zero-coupon debt.
German 10-year bunds yielded 1.27 percent as of 7:13 a.m. London time. The rate slid to 1.19 percent yesterday, the lowest since July 24. The price of the 1.5 percent securities due in February 2023 was at 102.11. The yield on the 30-year bund was at 2.19 percent.
Germany last sold the 2.5 percent securities due in July 2044 on Jan. 30 at an average yield of 2.45 percent. That compares with a record-low rate of 2.17 percent at an auction on July 25.
German bonds returned 0.7 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Italian debt gained 4.2 percent.