German Yields Rise to 3-Month High on Improving Economic Outlook

German 10-year government bonds fell for a second week, with yields rising to the highest in more than three months, as signs of faster European growth sapped demand for the region’s safest assets.

Irish bond yields narrowed to the least relative to benchmark German bunds in more than 3 1/2 years. Italy’s securities fell before the nation sells as much as 5.5 billion euros ($7.6 billion) of 2018 and 2024 debt on Dec. 30. A report next week will probably confirm that euro-area factory output grew at the fastest pace in more than two years in December.