BLBG:German, Dutch Bonds Decline as Demand for Euro-Area Debt Wanes
German 10-year bonds fell for a second day and Dutch, French and Austrian securities also dropped as demand for euro-area government debt waned.
Dutch bonds declined as the nation prepared to sell as much as 2.5 billion euros ($3.25 billion) of 20-year debt.
“We’re seeing some profit taking after the impressive rally we’ve seen in the semi-core,” said Michael Leister, an interest-rate strategist at Commerzbank AG in London. “There is no real risk aversion today and we have quite a decent chunk of supply coming to the market so there’s a lot for the market to digest.”
The German 10-year yield climbed four basis points, or 0.04 percentage point, to 1.27 percent at 9:25 a.m. London time. The price of the 1.5 percent bund due in February 2023 dropped 0.34, or 3.40 euros per 1,000-euro face amount, to 102.085.
The rate on similar-maturity Dutch bonds rose seven basis points to 1.70 percent.
German bunds handed investors a return of 1 percent this year through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. Dutch securities gained 0.3 percent and Spanish bonds earned 4.9 percent.
To contact the reporter on this story: Emma Charlton in London at echarlton1@bloomberg.net
To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net
