German Bonds Decline as Greek Pro-Bailout Parties Gain in Polls


28/05/2012 10:25 AST  Bloomberg

German government bonds fell after opinion polls showed greater support for Greece’s pro-bailout political parties, damping demand for the safest European fixed- income assets.

The declines pushed 10-year yields up from within two basis points of a record low. Italy plans to sell as much as 3.5 billion euros ($4.4 billion) of zero-coupon notes maturing in May 2014. It will also auction inflation-linked bonds due in September 2016 and September 2017.

German 10-year yields rose three basis points, or 0.03 percentage point, to 1.40 percent at 7:22 a.m. London time. The rate ended last week at 1.37 percent, after falling to 1.351 percent on May 24, the least on record. The 1.75 percent security due in July 2022 slid 0.3, or 3 euros per 1,000-euro face amount, to 103.26.

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