Azernews.Az

By Bloomberg

Government bonds across the euro area advanced as tensions eased in Greece and after auctions wound down in a week with near-record debt issuance for the year.

French securities led gains, which pushed the 10-year yield to a six-week low. Similar-maturity Spanish securities climbed for a ninth day, the longest run of gains since March 2013. Gross issuance totaled 36.3 billion euros ($39.6 billion) in the week, the second-highest in 2015, strategists at Barclays Plc said.

“The bulk of supply is behind us, the tone is likely to remain very supportive and the supply conditions will be very favorable for lower yields,” said Patrick Jacq, a senior fixed- income strategist at BNP Paribas SA in Paris.

The French 10-year bond yield slid four basis points, or 0.04 percentage point, to 1.10 percent at 8:53 a.m. London time. It touched 1.09 percent, the lowest since June 3. The 0.5 percent security due May 2025 rose 0.35, or 3.50 euros per 1,000-euro face amount, to 94.44.

“We are relatively bullish on core markets,” Jacq said. “There could be further spread compression but in the very near term the movement has been substantial, so there could be some pause.”