BS: Bund Yield Holds Near Record Low Before ECB Rate Call, Supply
By Keith Jenkins
June 10 (Bloomberg) -- The German 10-year bund yield held close to a record low before an interest-rate decision by the European Central Bank and as investors gauge demand at debt auctions from Spain, Italy and Ireland.
“Market focus will be on the ECB today,” analysts at WestLB AG, including John Davies in London, wrote in an e-mailed report. “The Spanish auction will be a challenge. The market is still concerned about the funding situation of Spanish banks, and the planned volume looks ambitious.”
The yield on the 10-year bund, Europe’s benchmark government security, was at 2.56 percent as of 7:18 a.m. in London. It fell to 2.50 percent on June 8, the lowest since at least 1989, according to Bloomberg generic data. The 3 percent security due July 2020 rose 0.05, or 50 euro cents per 1,000- euro face amount, to 103.81. The two-year note yield was little change at 0.49 percent.
Bunds have returned 7 percent this year, compared with 4.7 percent for U.S. Treasuries, while Spanish debt has fallen 3.1 percent, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies.
--Editors: Keith Campbell.
To contact the reporter on this story: Keith Jenkins in London at Kjenkins3@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
