Because at any given moment in time there's likely no such thing as a par 10y German bond. For example, the current 10y benchmark is the Aug 24 bund. As you can see, it's more like a 9y 10mo bond, rather than a 10y bond. In order to calculate the 10y par yield from the specific issue yields in the mkt, you need to interpolate, which is what what various models and methodologies do. If you look through the BuBa data, you'll find another data set (not Svensson). I honestly don't remember what the differences between the two methods are. You should read the notes and decide which one works better for you.Can anybody explain briefly why this yield curve are built by Svenson model and not just real closes? As I understand it's better to use closes prices of bonds than yield curves, is it?
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