German government bonds snapped a two-day advance before a report that analysts said will show euro-area economic confidence improved for a third straight month in March.
German 10-year yields rose from yesterday’s two-week low. Unemployment in Europe’s largest economy held at the lowest in more than two decades in March, data will show today, according to a Bloomberg survey of economists. Italy is scheduled to auction as much as 8.25 billion euros ($11 billion) of bonds due in 2017 and 2022.
The German 10-year yield rose one basis point, or 0.01 percentage point, to 1.85 percent at 7:28 a.m. London time. The rate dropped to 1.83 percent yesterday, the least since March 13. The 2 percent bond due January 2022 fell 0.115, or 1.15 euros per 1,000-euro face amount, to 101.365.
An index of executive and consumer sentiment in the 17- nation euro area increased to 94.5 from 94.4 in February, the European Commission will say today, according to the median estimate of economists in a Bloomberg survey.
Germany’s adjusted jobless rate held at 6.8 percent from February, a separate survey showed.
German bunds are little changed in 2012, their worst quarterly performance in a year, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Italian securities gained 11 percent and Portuguese bonds returned 14 percent since December.
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