Bloomberg News

German 10-Year Bunds Erase Drop After Ifo Survey, PMI Reports

October 24, 2012

German 10-year bunds erased a decline after reports showed euro-area services and manufacturing output contracted more than economists forecast in October and German business confidence unexpectedly fell to a 2 1/2-year low.

The yield on the securities was one basis point lower at 1.56 percent as of 9:06 a.m. London time, after earlier rising as much as three basis points to 1.60 percent.

A composite index based on a survey of purchasing managers in both industries fell to 45.8 from 46.1 in September, London- based Markit Economics said today. Economists had forecast a reading of 46.5, the median of 18 estimates in a Bloomberg News survey showed. A reading below 50 indicates contraction.

The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, dropped to 100.0 from 101.4 in September. That’s the sixth straight decline and the lowest reading since February 2010. Analysts in a separate Bloomberg News survey predicted an increase to 101.6.

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net


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