Italian government bonds fell, pushing 10-year yields up from a record low, as investors monitored speeches by European Central Bank policy makers for signs of whether they will introduce new stimulus.
The Standard & Poor’s 500 Index fell, giving the gauge its worst week since January, Treasuries were little changed and gold rose as investors sought haven assets after talks failed to resolve the Ukraine standoff before Sunday’s Crimea referendum.
Treasuries fell, pushing yields on 10-year notes higher by the most since November, along with counterparts from developed nations, as signs the crisis in Ukraine is easing reduced demand for haven assets.
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.
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.
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.
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.