German Yields Approach Record Low as Greek Bonds Drop After Vote

German 10-year yields were about three basis points from a record low, outperforming higher-yielding peers, as Greece’s failure to elect a president boosted the anti-austerity opposition’s chances of ousting the government.

Greek securities dropped as Prime Minster Antonis Samaras failed to get enough votes to install Stavros Dimas in a procedure that may still end up triggering national elections. Benchmark German 10-year yields are set for the biggest annual decline since 2008, propelled by speculation that the European Central Bank will extend its monetary stimulus to include euro-area sovereign-bond purchases. Spanish and Italian 10-year yields touched the lowest on record.