EON, RWE Rise to 6-Week High as ECB Starts Buying Utility Bonds

EON SE and RWE AG rose to the highest level in six weeks after the European Central Bank started buying corporate utility bonds.

Germany’s largest utilities were the biggest gainers on Germany’s benchmark DAX index on Wednesday after Bloomberg News reported that the ECB began adding investment-grade corporate notes to its 80 billion-euro ($91 billion) monthly purchase program.

France’s central bank bought 3 million euros ($3.4 million) of Engie SA’s bonds in the secondary market on behalf of the ECB, according to a person familiar with the matter.

EON rose as much as 3.4 percent to 9.369 euros a share, the highest since April 28, before trading at 9.32 euros by 9:18 a.m. in Frankfurt. RWE’s climbed as much as 2.4 percent to 13.22 euros, the most since April 29.

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