Germany’s Bonds Lead Soveriegn Debt Dip in Europe Amid Fed Tapering Bets

Paul Dykewicz

Germany’s Bonds Lead Sovereign Debt Valuation Dip in Europe Amid Fed Tapering Bets (Bloomberg)

Germany’s government bonds led declines in the value of the euro region’s sovereign securities as a U.S. job report raised speculation that the Federal Reserve will taper its asset-purchase program. Germany’s 10-year bund yields climbed to the highest level in six weeks, after euro-area data confirmed the region’s economy expanded for a second quarter, reducing demand for Europe’s benchmark debt. Demand fell as Germany auctioned 3.3 billion euros ($4.5 billion) of five-year notes. Italian 10-year bonds slid for a fourth day — the longest losing streak since July. Investors should sell bunds, along with Treasuries, gilts, gold, the Swiss franc and the yen, as the Fed begins to phase out its asset-purchase stimulus program, said Erik Nielsen, global chief economist for UniCredit SpA in Istanbul. Important economic data will arrive Friday, Dec. 6, when the U.S. Labor Department releases its November jobs report. “Investors are fearing better nonfarm payrolls data on Friday would definitely put Fed tapering back on the agenda,” said Alexander Aldinger, a fixed-income strategist at Commerzbank AG in Frankfurt. “This is broadly the reason why bunds are lower and the periphery is selling off. The European data today is secondary.” Germany’s 10-year yields climbed nine basis points, or 0.09 percentage point, to 1.81 percent at 4:19 p.m. London time to mark th highest level since Oct. 22. The 2 percent bund maturing in August 2023 fell 0.765, or 7.65 euros per 1,000-euro face amount, to 101.67.

Like This Article?
Now Get a FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Take advantage of Abenomics and the Bank of Japan’s plan to create inflationary, yen-weakening pressures in the Japanese economy to spur exports and growth.

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE