Italy’s government bonds rose, pushing 10-year yields to a record low, amid speculation demand from local investors at a sale of inflation-linked debt will be reinforced by overseas funds as the economy improves.
U.K. government bonds rose, with 10-year yields approaching the lowest level since October, as tension in the eastern Donetsk region of Ukraine escalated, boosting demand for the safest fixed-income securities.
Spanish government bonds rose, pushing 10-year yields to the lowest in more than eight years, after European Central Bank President Mario Draghi said further gains in the euro would trigger more monetary stimulus.
Currency traders are more bullish on the pound that at any time in the past three years as the U.K.’s booming property market fuels speculation the Bank of England is getting closer to raising interest rates.
The pound rose the most in two months versus the dollar this week as manufacturing and production data signaled the U.K. recovery is on track, boosting bets the Bank of England will raise interest rates.
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.