Bunds Fall on Concern Bailout Costs to Rise; Spanish Bonds Gain
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Bunds fell the most in two weeks amid speculation European leaders are planning a 940 billion-euro ($1.29 trillion) package to fight the debt crisis, fueling concern German taxpayers will have to fund increased bailouts.
Bunds pared a weekly gain as stocks rose on optimism the plan will contain Europe’s debt woes, damping demand for safer securities. Europe’s finance ministers are meeting today before euro-area leaders gather for summits on Oct. 23 and Oct. 26 to work on a durable solution. Spanish and Italian bonds gained as the European Central Bank was said to buy the securities. French bonds extended a weekly decline.