Investors paid little attention to Italy’s political intrigue this month, focusing instead on early signs of economic recovery and the outgoing government’s commitment to budget rigor. That may start to change.
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.
U.S. 30-year yields surged the most among developed-nation debt this quarter as analysts said retail sales data today will add to signs of economic growth, boosting the case for the Federal Reserve to cut its bond purchases.
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.
Germany’s government bonds rose, pushing 10-year yields down the most since November, as reports showing inflation slowed and Italian services contracted in December spurred demand for the region’s safest assets.
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.