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German Bunds slid on Friday after a report that the European Central Bank had discussed if rates could rise before it completed its bond buying programme.
The German five-year yield jumped 7 basis points to -0.32 per cent while the seven-year climbed 6 basis points to -0.04 per cent. Yields rise as bond prices fall.
The report from Bloomberg said that members of the ECB’s Governing Council had talked over ways to communicate and plan an end to its stimulus measures, as improving economic data and budding inflation gives the central bank space to consider winding down quantitative easing.
The losses reverberated across sovereign bond markets, with a mild rally in US Treasuries losing momentum after the story was published.
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