July 1 (Bloomberg) -- Greek two-year notes led gains by securities from the euro region's most indebted countries as speculation that the Mediterranean nation will default subsided, boosting demand for higher-yielding assets.
German 10-year government bonds snapped four days of declines as data showed growth in euro-region manufacturing slowed for a third month in June. Spanish bonds gained for a fourth day after Greece's lawmakers approved a budget-cutting package and banks lined up behind debt-rollover plans. Ten-year German yields have jumped 18 basis points this week, the biggest five-day increase in seven months.
"The main driver is the optimism about Greece," said Glenn Marci, a strategist at DZ Bank AG in Frankfurt. "There's clearly a risk-on mentality. Bunds have served well as a safe haven in the past weeks, and we have seen some flows out of them this week."
Two-year Greek note yields fell 63 basis points to 26.66 percent as of 9 a.m. in London, according to Bloomberg Bond Trader prices. The 4.6 percent security, maturing in May 2013, gained 0.675, or 6.75 euros per 1,000-euro ($1,452) face amount to 70.36. Ten-year bond yields were little changed at 16.63 percent.
Ten-year German yields were little changed at 3.02 percent. They reached 3.05 percent yesterday, the most since June 9. Two- year note yields were less than one basis point higher at 1.61 percent. They have climbed 26 basis points this week.
A manufacturing gauge based on a survey of purchasing managers in the 17-nation euro region fell to 52 from 54.6 in May, London-based Markit Economics said today. That's the lowest in 18 months. A reading above 50 indicates growth.
Spanish Bonds
Spanish bonds rose for a fourth day, sending ten-year yields down five basis points to 5.39 percent. Yields on Italian securities of a similar maturity dropped three basis points to 4.85 percent. Portuguese two-year notes rose for a fourth day, pushing yields down 12 basis points to 13.07 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.
Source:www.sfgate.com
German 10-year government bonds snapped four days of declines as data showed growth in euro-region manufacturing slowed for a third month in June. Spanish bonds gained for a fourth day after Greece's lawmakers approved a budget-cutting package and banks lined up behind debt-rollover plans. Ten-year German yields have jumped 18 basis points this week, the biggest five-day increase in seven months.
"The main driver is the optimism about Greece," said Glenn Marci, a strategist at DZ Bank AG in Frankfurt. "There's clearly a risk-on mentality. Bunds have served well as a safe haven in the past weeks, and we have seen some flows out of them this week."
Two-year Greek note yields fell 63 basis points to 26.66 percent as of 9 a.m. in London, according to Bloomberg Bond Trader prices. The 4.6 percent security, maturing in May 2013, gained 0.675, or 6.75 euros per 1,000-euro ($1,452) face amount to 70.36. Ten-year bond yields were little changed at 16.63 percent.
Ten-year German yields were little changed at 3.02 percent. They reached 3.05 percent yesterday, the most since June 9. Two- year note yields were less than one basis point higher at 1.61 percent. They have climbed 26 basis points this week.
A manufacturing gauge based on a survey of purchasing managers in the 17-nation euro region fell to 52 from 54.6 in May, London-based Markit Economics said today. That's the lowest in 18 months. A reading above 50 indicates growth.
Spanish Bonds
Spanish bonds rose for a fourth day, sending ten-year yields down five basis points to 5.39 percent. Yields on Italian securities of a similar maturity dropped three basis points to 4.85 percent. Portuguese two-year notes rose for a fourth day, pushing yields down 12 basis points to 13.07 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.
Source:www.sfgate.com
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