German bonds fell, pushing up 10-year yields by the most in eight weeks, as speculation European policy makers are accelerating plans to stem the spread of the debt crisis damped demand for the safest assets.

Spain's 10-year bonds climbed for a fifth day after European Central Bank President Mario Draghi said officials stand ready to act as the region's growth outlook worsens. Two- year German yields jumped from as low as 0.002 percent after the central bank left its benchmark interest rate at 1 percent, as predicted by most economists in a Bloomberg News survey.

There's "wishful thinking that a big coordinated response lies around the corner," said John Wraith, a fixed-income strategist at Bank of America Merrill Lynch in London. "Today's move is little more than covering of risk-off positions and taking profit" after last month's rally in German securities, he said.

German 10-year yields rose 11 basis points, or 0.11 percentage point, to 1.32 percent at 4:27 p.m. London time. That's the biggest increase since April 11. The 1.75 percent securities maturing in July 2022 dropped 1.10, or 11 euros per 1,000-euro ($1,251) face amount, to 104.005.

"I don't think it would be right for the ECB to fill other institutions' lack of action," said Draghi when asked about the prospect of another offering of three-year funds for banks.

Cameron and Obama increase pressure on Merkel over eurozone crisis | Business | guardian.co.uk

David Cameron will deliver a blunt message to Angela Merkel in Berlin on Thursday that he and Barack Obama have agreed on the need to flesh out an "immediate plan" to tackle the eurozone crisis.

Amid concerns in London and Washington that the German chancellor is dragging her feet - noticeably in declining at the moment to countenance eurobonds - the prime minister will tell Merkel the eurozone has just weeks to act to shore up the single currency.

Cameron, who has a meeting in Berlin on Thursday afternoon with the German chancellor, believes that agreement needs to be reached at two crucial summits this month. They are the G20 summit in Mexico next week and the EU's annual summer summit in Brussels at the end of the month.

The prime minister will begin a short European tour on Wednesday afternoon when he flies to Oslo for dinner with Jens Stoltenberg, the prime minister of Norway, which is not an EU member state. Cameron and Stoltenberg will then travel to Berlin on Thursday for a town hall question-and-answer session with Merkel. The German chancellor invited Cameron and Stoltenberg. The town hall event will be followed by Cameron's meeting with Merkel.