German 10-year bonds decline on US job statistics

German 10-year bonds declined in trading yesterday, pushing yields up the most in almost two weeks, as a US payroll report showing employers added more jobs than economists forecast damped demand for safer assets.

Finnish and Dutch securities also fell as the report stoked speculation an improving US labour market will allow the Federal Reserve to reduce asset purchases. Portugal’s bonds rose after Prime Minister Pedro Passos Coelho said that his government will still have the support of a coalition partner even after the leader of the party resigned as a minister this week.

ECB president Mario Draghi pledged yesterday to keep interest rates low for an extended period.