Euro-area bonds declined, with German 10-year yields rising for a fourth day, as investors considered whether European Central Bank policy makers will introduce unconventional easing measures this week.
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.
Spain’s bonds rose, sending the 10- year yield below that on Treasuries for the first time in four years, after a European Central Bank Executive Board member said interest rates in the euro area will remain subdued.