Spain’s bonds rose after the nation sold 10-year debt at the lowest yield since September 2010 as borrowing costs for governments across Europe declined on bets interest rates will stay lower for longer.
U.K. gilts declined for the first week in five as the nation began its funding program for the fiscal year starting this month and amid concern inflation may accelerate, reducing the value of fixed payments from bonds.
The pound fell from a five-week high against the euro as the bond markets of Europe’s most indebted nations rallied amid optimism Cyprus is moving closer to reaching agreement on an international bailout.
The pound climbed the most in two weeks against the euro amid bets its 6.5 percent slide this year has been excessive amid the possibility the government will delay fiscal austerity measures in its budget next week.
U.K. 10-year gilts rose for the first time in five days as investors sought the safety of British debt on concern political turmoil in the Netherlands and French elections may disrupt efforts to stem the debt crisis.