Greek Bonds Lead Euro-Area Periphery Rally on Recovery Optimism

Greece’s government bonds led gains among Europe’s higher-yielding sovereign securities as optimism that the country is set to sell coupon-bearing debt for the first time in four years boosted demand for its assets.

Ten-year bonds rose for a second day after Infrastructure Minister Michalis Chrisochoides said Greece will probably sell securities before May. Greece reached an agreement with its creditors after a review of its adjustment program, a European Union spokesman said. Athens-based Piraeus Bank SA sold non-investment grade debt. German bunds erased a gain as President Vladimir Putin said Russia won’t further split up Ukraine, damping demand for the euro area’s safest assets.