U.K. government bonds rose, with 10-year yields approaching the lowest level since October, as tension in the eastern Donetsk region of Ukraine escalated, boosting demand for the safest fixed-income securities.
U.K. government bonds rose, sending 10-year yields to a five-month low, after the Federal Reserve damped expectations its borrowing costs would rise soon and before the Bank of England announces its latest policy decision.
Italian bonds led gains in euro-area government debt markets as European Central Bank President Mario Draghi said policy makers debated measures that tend to lower borrowing costs as they seek to stem the threat of deflation.
Italy’s government bonds rose, with 10-year securities extending a fourth weekly gain, as Prime- Minister-designate Matteo Renzi prepared to name his cabinet amid speculation he will accelerate economic reform.
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.
Spain’s 10-year government bonds fell, snapping gains that pushed the yield below 3.5 percent for the first time in eight years, before the country sells as much as 5 billion euros ($6.88 billion) of debt tomorrow.