German Bonds Advance for Eighth Month in Longest Run Since 2005
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German 10-year bonds advanced this week, completing the longest run of monthly gains since January 2005, after European Central Bank President Mario Draghi fueled bets that officials will expand stimulus to revive the economy.
Gains this week pushed yields from Ireland to Italy to record lows as reports showed euro-area economic confidence fell and inflation slowed to the least since 2009. Draghi said on Aug. 22 that bets on price increases “exhibited significant declines,” and officials are “ready to adjust our policy stance further,” fueling speculation they may embark on a policy of bond purchases known as quantitative easing. ECB officials next meet on Sept. 4.