Jan. 24 (Bloomberg) -- German bonds rose, while Italian and French securities dropped, increasing the additional yield investors demand to hold lower-rated sovereign debt.
The yield on Germany’s 10-year bunds dropped two basis points to 1.95 percent at 11:01 a.m. London time. The rate on French securities of a similar maturity increased three basis points to 3.17 percent, increasing the difference in yield, or spread, between the bonds by six basis points to 123 basis points.
The Italian-German yield gap rose seven basis points to 420 basis points, while the Spanish-German spread increased five basis points to 354 basis points.
Finnish, Austrian and Dutch bonds also underperformed benchmark German debt.
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