German government bund fluctuated on Tuesday before a report showed that producer prices in the 17-nation bloc declined in the month of September and as the country is set to auction five-year notes totaling 4 billion euros tomorrow. German 10-year government bunds yielded at 1.68% as of 7:11 a.m. in London after the rates dropped to the weakest level since August 8 at 1.65% on October 31.