German government bonds snapped their biggest advance in almost two weeks amid speculation an auction of 30-year securities will add to evidence demand for fixed-income assets is waning as the economy improves.
German government bonds fell, pushing 10-year yields to the highest in more than three months, as stock gains sapped demand for the safety of fixed-income assets amid speculation European growth will accelerate.
Italian short-dated bond futures may offer investors better protection against price swings in Irish and Portuguese debt than contracts tied to longer-maturity securities or German notes, according to UniCredit SpA.
German government bonds fell for the first time in three days before euro-area manufacturing and confidence reports this week that economists said will add to signs of recovery, damping demand for safer assets.
Italian 10-year bond yields rose above those of Spain for the first time in 18 months amid speculation a vote on whether to expel Silvio Berlusconi from Italy’s Senate will destabilize the coalition government.