German Notes Drop as Draghi Damps Rate-Cut Bets
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German two-year notes erased an advance as European Central Bank President Mario Draghi said recent economic indicators signaled the euro region is through the worst of its economic slump.
Ten-year government bunds pared a gains after Draghi’s comments damped speculation the central bank would take additional measures to reduce borrowing costs, even as he pledged to keep interest rates low for an extended period. European bonds pared intraday gains as Treasuries tumbled after U.S. initial claims for unemployment insurance fell and a gauge of manufacturing rose. Spain’s bonds climbed as the nation exceeded its maximum target at a debt sale.