Germany’s inflation expectations rose from an 18-month low as a report showed consumer prices increased more in November than economists forecast, damping the case for further European Central Bank stimulus.
Germany’s 10-year government bonds rose, with yields falling from near a three-week high, as data showed European industrial production slid in September more than analysts predicted, spurring bets on more stimulus.
Hong Kong’s futures and options market operator said traders will need to put up additional collateral when using some U.S. Treasury bills to back their positions, citing concern the U.S. is at risk of a default.
Treasury 10-year note yields are close to a one-week high as the U.S. gets ready to sell $96 billion of two-, five- and seven-year securities over the next three days and Federal Reserve policy makers prepare to meet.
Germany’s 10-year bonds advanced for the first month since July after a report showed the jobless rate in the euro area climbed to a record in October, indicating the region is struggling to boost growth.
Germany’s government bonds rose for a second day on speculation the partial U.S. government shutdown this month slowed growth and will encourage the Federal Reserve to maintain its asset-buying program.
Spain is taking steps to build a “firewall” to stem contagion from Portugal’s debt woes as it cuts the deficit and retools its economy, said Andrew Bosomworth , a money manager at Pacific Investment Management Co.
Spain’s government bonds fell for the first time in three days as ministers from the 17-member euro area gather in Brussels today to discuss aid to Cyprus and Greece as they struggle to contain the region’s debt crisis.