German Bunds Advance as ECB Holds Key Rate, Stimulus Measures - by Anna Rascouet

German bunds advanced for the first time this week after the European Central Bank kept its key interest rate at a record low and maintained some stimulus measures it had introduced to boost economic growth.

The gains sent the yield to within 2 basis points of its lowest in five months. The ECB will keep offering banks unlimited funds at a fixed rate for maturities of seven days and one month until at least Oct. 12. President Jean-Claude Trichet said the recovery from the worst recession since World War II is “likely to remain uneven.” The ECB cut the main refinancing rate to 1 percent in May.

For the complete report: German Bunds Advance as ECB Holds Key Rate, Stimulus Measures - BusinessWeek