Economics

European Bonds Decline as PMI Data Point to Faster Inflation

  • German 10-year yield rises from near lowest level in a month
  • Greek bonds rise as creditors agree to resume bailout talks

What's Driving European Bonds Markets?

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European bonds fell as a gauge of euro-region economic output unexpectedly climbed to the highest level in almost six years, boosting bets for accelerating inflation and a winding down of the European Central Bank’s asset-purchase program.

Benchmark German 10-year bund yields climbed from close to the lowest level in more than a month, while those on similar-maturity French debt increased for a third day as a composite Purchasing Managers’ Index beat economists’ forecasts for a decline in February. Greek bonds rose amid optimism the nation is moving toward an agreement with creditors on continuing a bailout.