Ireland’s 10-year securities rose for a ninth week as the nation auctioned its first bonds since 2010, marking its successful emergence from bailout measures and adding to signs the euro area’s financial woes are abating.
Germany’s bonds rose as U.S. payrolls increased at the slowest pace since January 2011 and after the European Central Bank said it planned to keep interest rates low for a prolonged period to support the recovery.
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.
Spain’s government bonds erased gains, with five-year yields climbing from the lowest since 2005, as investors assessed the prospect of the Federal Reserve reducing stimulus earlier than some economists predict.
European government bonds were little changed as investors showed a muted reaction to Standard & Poor’s decision to raise its outlook on Spain’s debt and strip the Netherlands of its top credit rating.
German bunds fell, extending their biggest weekly drop since November, amid a global selloff in government bonds spurred by bets U.S. economic growth is gathering pace and the European debt crisis is abating.