Bonds Slump as Meeting of European Chiefs Buoys Defense Stocks

Investors sold European bonds and bought defense stocks on speculation a meeting in Paris between the bloc’s leaders will point toward higher spending on the continent’s security.

The German 10-year yield rose as much as seven basis points to reach 2.50%, while the euro dipped and defense firm Rheinmetall AG hit a record high. US Treasuries are closed for a national holiday, though futures implied an increase in the 10-year yield of about 1 basis point.