German Bunds Decline Third Day as GDP Growth Damps Safety Demand

German government bonds fell for a third day after a report showed Europe’s biggest economy expanded in the second quarter, curtailing demand for the region’s safest securities.

Ten-year bund yields rose to the highest in 17 months as European Central Bank policy maker Ewald Nowotny said the recent “stream of good news” in the euro area removed the need to cut interest rates. Dutch 10-year rates climbed to the most since April 2012, while Austria’s reached the highest since July 2012. Spanish and Italian bonds fell this week as Federal Reserve minutes showed policy makers were “comfortable” with slowing stimulus that has boosted higher-yielding assets.