German 10-year government bonds rose, paring their first weekly drop in five, as European finance ministers struggled to get consensus on Cyprus’s bailout and a drop in U.S. retail sales boosted demand for safer assets.
German government bonds rose, pushing 10-year yields to the lowest since August, after European Central Bank President Mario Draghi signaled further stimulus is possible should economic conditions deteriorate.
Most U.S. stocks fell for a third day, the longest slump of the year for the Standard & Poor’s 500 Index, as Cyprus rejected a bank-deposit levy needed to secure European bailout funds. Treasuries rallied and the euro traded at a four-month low versus the dollar.
Germany’s bonds fell, with 10-year yields rising to the highest in more than two months, as a constitutional court cleared Europe’s permanent bailout fund for ratification, damping demand for the safest assets.
Confidence in U.K. credit is declining the most in the global sovereign-debt market on concern the economy will fall into its third recession in five years and force the government to increase borrowing.