Ger­man 10-year govt bonds de­cline

The Pak Banker - - Company& -

FRANK­FURT: Ger­man govern­ment bonds de­clined, re­vers­ing the gains made in their first weekly ad­vance since the be­gin­ning of Novem­ber, amid con­cern pol­icy mak­ers may step up ac­tion to quell Europe's debt cri­sis and damp de­mand for bunds. The yield on 10-year Ger­man bonds rose to near a seven-month high. US Trea­suries also fell as an in­crease in Chi­nese in­ter­est rates failed to sti­fle spec­u­la­tion that global eco­nomic growth will ac­cel­er­ate in 2011. Bunds gained last week af­ter Fitch Rat­ings cut Por­tu­gal's credit grade. "Peo­ple may be tak­ing ad­van­tage to lock in some profit af­ter the rally last week," said Michael Leis­ter, a fixed-in­come an­a­lyst at WestLB AG in Dus­sel­dorf, Ger­many. "There's a great deal of un­cer­tainty and for that rea­son peo­ple are tak­ing a wai­t­and-see ap­proach. -PB News

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