Bloomberg News

German Bunds Pare Advance After Euro-Area Inflation Accelerates

September 30, 2011

Sept. 30 (Bloomberg) -- German government bonds pared their gains after a report showed European inflation quickened to the fastest in almost three years in September.

The German 10-year bond yield was two basis points lower at 1.98 percent as of 10:06 a.m. in London, after being as low as 1.94 percent.

The euro-area inflation rate jumped to 3 percent this month from 2.5 percent in August, the European Union’s statistics office in Luxembourg said today in an initial estimate. That’s the biggest annual increase since October 2008. Economists had projected inflation to hold at 2.5 percent, according to the median of 38 estimates in a Bloomberg survey.

To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net


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