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.
German government bonds advanced, pushing 10-year yields below 1.50 percent for the first time since June, as stocks slumped after JPMorgan Chase & Co. said first-quarter profit declined more than forecast.
German government bonds fell for a fourth day, leading most euro-area sovereign debt lower, as investors bet the European Central Bank will refrain from adding new stimulus to tackle slowing inflation.
Greece’s government bonds led gains among Europe’s higher-yielding sovereign securities as optimism that the country is set to sell coupon-bearing debt for the first time in four years boosted demand for its assets.
Spain’s decision to sell 10-year bonds through banks in place of scheduled auctions this week represents an effort to capture lower yields after successful debt sales in the region last week, WestLB AG said.
German 30-year bonds rose, with yields falling from near a four-month high, as International Monetary Fund Managing Director Christine Lagarde urged policy makers to be vigilant of threats to global economic stability.
The yield on Portuguese five-year debt reached a euro-era record amid speculation the nation may be nearing a request for financial aid. Bunds rose for a third day as stocks fell after an earthquake struck northern Japan.