German government bonds rose, paring their first weekly drop in more than a month, before the European Central Bank publishes the results of its year-long examination of euro-area banks on Oct. 26.
The gains pushed down yields on benchmark 10-year bunds by the most in more than a week. Twenty-five lenders are set to fail the health check, with 105 passing, according to a draft communique of the final results seen by Bloomberg News. Demand for haven assets was also boosted by a case of Ebola in New York. Greek bonds extended their first weekly advance since early September. Spain’s securities rose before a review of the nation’s credit grade by Fitch Ratings.
“You will be swamped with information on Sunday,” said Jens Peter Soerensen, chief analyst at Danske Bank A/S in Copenhagen. There has been some “profit taking” before the results of the stress tests are released, he said.
Germany’s benchmark 10-year (GDBR10) yield fell two basis points, or 0.02 percentage point, to 0.89 percent at 4:03 p.m. London time. The yield reached 0.715 percent on Oct. 16, the least since Bloomberg started collecting the data in 1989. The 1 percent bund due in August 2024 rose 0.16, or 1.60 euros per 1,000-euro ($1,267) face amount, to 101.07.
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