Italy’s government bonds rose, with two-year yields dropping the most in almost three weeks, as the nation’s borrowing costs fell at an auction before lawmakers vote on the future of former Premier Silvio Berlusconi tomorrow.
Hungary fined 11 banks for what it said amounted to illegal collusion two years ago against a government program that imposed costs on lenders by allowing the repayment of foreign-currency loans at below-market rates.
European government bonds rose as Federal Reserve chairman nominee Janet Yellen signaled she will carry on the central bank’s stimulus until the U.S. economy improves, boosting demand for fixed-income assets.
Austria’s acting government put off the decision how to wind down 19 billion euros ($26 billion) of bad assets at nationalized Hypo Alpe-Adria-Bank International AG until it finishes talks to renew the governing coalition.
Bayerische Landesbank Chief Executive Officer Gerd Haeusler offered to stay until the end of March, three months longer than planned, as the bank hasn’t identified a successor, said a person with knowledge of the matter.
Hypo Alpe-Adria-Bank International AG, a nationalized Austrian lender, said it will drop below legal capital requirements by the end of November and has started talks to get new funds from the government.