Bloomberg News

German Bunds Fall for 2nd Day Before Business Confidence Report

November 24, 2011

Nov. 24 (Bloomberg) -- German government bonds fell for a second day as economists said an industry report today will show German business confidence declined for a fifth month.

Bund yields climbed to the highest in almost four weeks, extending their advance yesterday when bids at an auction of 10- year securities fell short of the maximum amount on offer. UBS AG Chief Executive Officer Sergio Ermotti said he wouldn’t consider bonds of any euro-area country as free from risk as the region’s sovereign-debt crisis intensifies. Germany’s gross domestic product rose 0.5 percent in the third quarter, a government report confirmed today.

The 10-year bund yield rose eight basis points, or 0.08 percentage point, to 2.23 percent at 7:37 a.m. London time, the highest since Oct. 28. The 2 percent security due in January 2022 fell 0.72, or 7.20 euros per 1,000-euro ($1,338) face amount, to 97.95. The two-year note yield increased three basis points to 0.48 percent.

German bonds have handed investors a return of 7.2 percent this year, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. U.S. Treasuries gained 9.8 percent.

--Editors: Nicholas Reynolds, Mark McCord

To contact the reporter on this story: Paul Dobson in London at

To contact the editor responsible for this story: Daniel Tilles at

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