U.K. 10-year bond yields fell to the lowest level in more than a week as investors awaited publication tomorrow of minutes of the Bank of England’s November meeting, which will show how policy makers voted.
European government bonds rose, with German 10-year yields snapping their biggest gain in two months, before a report this week that economists said will show euro- area growth slowed in the third quarter.
Italy sold 22.3 billion euros ($30 billion) of government inflation-linked bonds aimed at retail investors, setting a record and allowing the Treasury to potentially cut the size of debt auctions for the rest of the year.
U.K. government bonds fell, pushing 10-year yields to the highest in three weeks, as U.S. policy makers said they were close to a deal to bring a halt to the nation’s fiscal standoff, damping demand for the safest assets.
Treasury yields were three basis points away from the year’s low before a report forecast to show U.S. housing starts near recession levels, adding to concern about the recovery and boosting demand for the safety of bonds.