German government bonds rose as falling stock markets spurred demand for the safety of fixed- income assets.
The advance pushed the yield on the 10-year bund down to within 1 basis point of the lowest in more than five weeks. Greek bonds gained after borrowing costs fell at a sale of 26- week Treasury bills. Dutch 30-year bonds rallied after the nation sold 1.8 billion euros ($2.5 billion) of 3.75 percent 2042 debt. The Europe Stoxx 600 Index dropped 0.2 percent, while the MSCI World Index fell 0.4 percent.
“Falling stocks are helping underpin the safety demand, which is supporting bunds,” said David Schnautz, a fixed-income strategist at Commerzbank AG in London.
German 10-year bond yields fell three basis points to 2.24 percent at 2:15 p.m. in London. It reached 2.21 percent earlier today. The 2.25 percent security due September 2020 rose 0.28, or 2.8 euros per 1,000-euro face amount, to 100.10. Two-year yields dropped two basis points, or 0.02 percentage point, to 0.77 percent.
Greek 10-year government bonds rose versus benchmark German bunds, narrowing the so-called yield spread by 15 basis points to 685 basis points. That’s the lowest since June 21. The Irish- German yield spread widened five basis points to 422 points. The Portuguese-German spread rose 12 points to 399.
Greek bonds rallied for a second day. The 10-year yield tumbled yesterday by the most since the European Union and International Monetary Fund crafted a 750 billion-euro aid package in May to backstop the euro. The yield dropped 50 basis points, narrowing the yield spread to bunds to below 700 basis points for the first time since June 22, after the IMF said it’s ready to give the nation more time to repay loans.
Greek Sale
Greece sold the bills at an average yield on 4.54 percent today, compared with 4.82 percent at a sale of similar-maturity securities on Sept. 14, Greece’s Public Debt Management Agency in Athens said. Investors bid for 4.22 times the securities offered today, compared with 4.5 times at the last sale. The so- called PDMA issued 1.17 billion euros of bills, more than the 900 million euros it indicated before the sale.
Dutch 30-year yields fell four basis points to 2.95 percent after the bond auction. The Netherlands sold the bonds at an average yield of 2.91 percent, a spread of six basis points over the German 4.75 percent bond maturing in July 2040, compared with a spread of 14 basis points last time they sold the securities on May 18.
German inflation accelerated to 1.3 percent in September from 1 percent in August, the nation’s Federal Statistics Office said today, confirming an earlier estimate.
German bonds returned 2.1 percent since June 30, compared with 3.2 percent for U.S. Treasuries and 3.8 percent for U.K. gilts, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.
Greek bonds handed investors 10 percent during the period, while Irish bonds lost 2.8 percent and Portuguese bonds 0.8 percent.
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The advance pushed the yield on the 10-year bund down to within 1 basis point of the lowest in more than five weeks. Greek bonds gained after borrowing costs fell at a sale of 26- week Treasury bills. Dutch 30-year bonds rallied after the nation sold 1.8 billion euros ($2.5 billion) of 3.75 percent 2042 debt. The Europe Stoxx 600 Index dropped 0.2 percent, while the MSCI World Index fell 0.4 percent.
“Falling stocks are helping underpin the safety demand, which is supporting bunds,” said David Schnautz, a fixed-income strategist at Commerzbank AG in London.
German 10-year bond yields fell three basis points to 2.24 percent at 2:15 p.m. in London. It reached 2.21 percent earlier today. The 2.25 percent security due September 2020 rose 0.28, or 2.8 euros per 1,000-euro face amount, to 100.10. Two-year yields dropped two basis points, or 0.02 percentage point, to 0.77 percent.
Greek 10-year government bonds rose versus benchmark German bunds, narrowing the so-called yield spread by 15 basis points to 685 basis points. That’s the lowest since June 21. The Irish- German yield spread widened five basis points to 422 points. The Portuguese-German spread rose 12 points to 399.
Greek bonds rallied for a second day. The 10-year yield tumbled yesterday by the most since the European Union and International Monetary Fund crafted a 750 billion-euro aid package in May to backstop the euro. The yield dropped 50 basis points, narrowing the yield spread to bunds to below 700 basis points for the first time since June 22, after the IMF said it’s ready to give the nation more time to repay loans.
Greek Sale
Greece sold the bills at an average yield on 4.54 percent today, compared with 4.82 percent at a sale of similar-maturity securities on Sept. 14, Greece’s Public Debt Management Agency in Athens said. Investors bid for 4.22 times the securities offered today, compared with 4.5 times at the last sale. The so- called PDMA issued 1.17 billion euros of bills, more than the 900 million euros it indicated before the sale.
Dutch 30-year yields fell four basis points to 2.95 percent after the bond auction. The Netherlands sold the bonds at an average yield of 2.91 percent, a spread of six basis points over the German 4.75 percent bond maturing in July 2040, compared with a spread of 14 basis points last time they sold the securities on May 18.
German inflation accelerated to 1.3 percent in September from 1 percent in August, the nation’s Federal Statistics Office said today, confirming an earlier estimate.
German bonds returned 2.1 percent since June 30, compared with 3.2 percent for U.S. Treasuries and 3.8 percent for U.K. gilts, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.
Greek bonds handed investors 10 percent during the period, while Irish bonds lost 2.8 percent and Portuguese bonds 0.8 percent.
http://jodnet.blogspot.com
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