German 10-year government bonds snapped four days of declines before data forecast to confirm growth in euro-region manufacturing slowed in June. Ten-year yields have jumped 19 basis points this week, the biggest five-day increase in seven months, as speculation Greece will default subsided after banks lined up behind debt-rollover plans and lawmakers approved a budget-cutting package. Markit Economics’ final reading of the manufacturing gauge decreased to 52 from 54.6 in the previous month, according to the median estimate of 25 economists surveyed by Bloomberg News. A reading above 50 indicates growth. Ten-year German bund yields were little changed at 3.02 percent as of 7:45 a.m. in London. They reached 3.05 percent yesterday, the most since June 9. The 3.25 percent security maturing in July 2021 traded at 101.925. Two-year yields were one basis point higher at 1.62 percent. Notes from Europe’s most indebted nations, including Greece, rose yesterday, while bunds declined, after Germany’s biggest banks agreed on a proposal to roll over Greek debt holdings to stave off the area’s first sovereign default. German government bonds handed investors a loss of 0.2 percent so far this year, compared with a 2.4 percent gain for U.S. Treasuries and a 1.8 percent advance for U.K. gilts, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. To contact the reporters on this story: Emma Charlton in London at echarlton1@bloomberg.net; Lucy Meakin in London at lmeakin1@bloomberg.net. To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net.

Source