Germany’s 10-Year Bonds Little Changed After Growth AcceleratesAnchalee Worrachate
Germany’s government bonds were little changed as a report confirmed the nation’s economy expanded at a faster pace in the fourth quarter than in the previous three months.
Benchmark 10-year yields were about seven basis points from the lowest level since August. Italy is scheduled to auction as much as 2.5 billion euros ($3.4 billion) of zero-coupon debt due in December 2015 and 1 billion euros of inflation-linked bonds maturing in September 2018 today.
Germany’s 10-year bund yielded 1.67 percent as of 7:17 a.m. London time. The rate dropped to 1.60 percent on Feb. 5, the least since Aug. 1. The price of the 1.75 percent security due in February 2024 was 100.70.
German gross domestic product rose 0.4 percent in the three months through December from the third quarter, when it increased 0.3 percent, the Federal Statistics Office in Wiesbaden said, confirming a previous estimate on Feb. 14.
German securities returned 1.8 percent this year through yesterday, Bloomberg World Bond Indexes show. Spain’s rose 3.9 percent and Italian bonds gained 3.2 percent.