German Government Bonds Are Little Changed Before 10-Year Sale

By Lucy Meakin & David Goodman 

German government bonds were little changed as the nation prepared to auction an additional 4 billion euros ($5.27 billion) of 10-year securities.

The 10-year German yield was about eight basis points from the lowest level since July. Portugal is also scheduled to sell three- and 12-month bills today. Italian retail investors ordered more than 17 billion euros of inflation-linked bonds as strong demand prompted the Treasury to close its fourth sale of the securities two days early yesterday.

Germany’s 10-year yield was at 1.28 percent at 7:28 a.m. London time after falling to 1.20 percent on April 5, the least since July 24. The 1.5 percent bund maturing in February 2023 traded at 102.065.

The nation last sold 10-year debt on March 20 at an average yield of 1.36 percent. That compares with a record-low auction yield of 1.31 percent on July 11.

German bonds returned 0.6 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Italian bonds gained 2.1 percent and Portugal’s rose 3.1 percent.

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net; David Goodman in London at dgoodman28@bloomberg.net

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