German 10-Year Yields Rise to 2-Month High as Confidence Surges

Germany’s 10-year bond yield climbed to the highest level since October as an index of consumer confidence in Europe’s largest economy rose to the most in six years, damping demand for the region’s safest assets.

The additional yield investors demand to hold 10-year securities instead of two-year notes increased to the most in a month after the Federal Reserve said it would reduce its asset purchases, weakening demand for longer-maturity bonds. Yields on debt issued by the European Union fell relative to those on Germany’s even after the EU lost its top credit rating at Standard & Poor’s, which cited weakening political cohesion and finances. Italian bonds declined for a third day.