The euro area’s higher-yielding government bonds are emerging as a haven from emerging-market turmoil as the prospect of greater stimulus from the European Central Bank underpins demand for the securities.
Italy’s government bonds rose, pushing 10-year yields to a record low, amid speculation demand from local investors at a sale of inflation-linked debt will be reinforced by overseas funds as the economy improves.
European Central Bank President Mario Draghi’s plan for further monetary easing is prompting his counterpart in Poland to respond with preparations of his own to keep the zloty from threatening the nation’s recovery.
The Standard & Poor’s 500 Index rebounded from the worst weekly loss in two years, weathering a selloff in the final hour, after retail sales rose the most since 2012 and Citigroup Inc.’s earnings unexpectedly rose. Treasuries fell with the ruble and commodities advanced on concern the situation in Ukraine is worsening.