World Economy

German Bonds in Worst Month Since 2013

German Bonds in Worst Month Since 2013German Bonds in Worst Month Since 2013

German bonds headed for their worst month since 2013 as a global selloff deepened amid speculation major central banks are moving closer to reining in stimulus, Bloomberg reported. Europe’s benchmark 10-year securities fell for a sixth day, pushing yields to the highest in almost six months. Ten-year debt yields in the US and Australia also climbed to levels last seen in May, buoyed by expectations that the Federal Reserve will raise interest rates this year and amid signs that global inflation is accelerating. German 10-year bund yields rose one basis point, or 0.01 percentage point, to 0.18% in London, after reaching 0.22%, the highest since May 5. The 0% security due in August 2026 fell 0.068, or 68 euro cents per €1,000 ($1,092) face amount, to 98.283. Yields on the securities rose 30 basis points in October, the biggest monthly gain since January 2013. Eurozone bonds declined earlier this month amid speculation that the Frankfurt-based ECB was preparing to pare its €1.7 trillion asset-purchase program, which is scheduled to run until at least March 2017.


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