Bloomberg News

German Bunds Snap 2-Day Advance Before Economic Confidence Data

March 29, 2012

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.

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

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


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