Bonds Climb Across Europe as Oil-Price Drop Weighs on Inflation

  • Treasuries, German bunds affected by economic-weakness concern
  • U.K. break-even rates retreat toward lowest level since March
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Government bonds from the U.K. to Germany advanced as oil prices declined, weighing on the outlook for inflation and boosting demand for fixed-income assets. Treasuries also rose.

U.K. 10-year gilts climbed for the first time in five days. Oil extended losses after a government report showed U.S. crude inventories grew by the most in six months. That weighed on market expectations of inflation in the U.S. and U.K.