German 10-year bund yields fell from the highest level in seven weeks after a report showed the euro-area economy contracted more in the first quarter than analysts forecast, spurring demand for safer assets. Greek bonds gained, sending 10-year yields below 9 percent for the first time since October 2010, after Fitch Ratings raised the nation’s credit rating yesterday by one level. Italian bonds were little changed as the nation said it will sell government debt maturing in 2044 through banks. The 10-year bund yield was little changed at 1.38 percent at 10:48 a.m. London time after rising to 1.41 percent, the highest level since March 25. The price of the 1.5 percent bond due in February 2023 was 101.125. Gross domestic product in the euro zone fell 0.2 percent after a 0.6 percent decline in the previous three months, the European Union’s statistics office in Luxembourg said. The median estimate in a Bloomberg News survey was for a contraction of 0.1 percent. Greece’s 10-year yield fell 91 basis points, or 0.91 percentage point, to 8.41 percent. Italy’s 10-year yield fell one basis point to 4.01 percent. To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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