Italian Bonds Rise on ECB Debt Purchases; French Spread Widens

Italian government bonds rose as the European Central Bank was said to purchase the securities and after the nation sold the maximum amount of one-year bills on offer at an auction.

The advance pushed yields on Italian debt lower after they reached euro-era records yesterday. Italy’s senate is set to vote tomorrow on a package of austerity measures to clear the way for a new government. Yields on five- and 10-year securities stayed near 7 percent amid a clash between Germany and France over Europe’s permanent rescue fund and ECB comments that its intervention in the market is temporary. The French yield premium over German bonds reached a euro-era record as Standard & Poor’s said it erroneously sent a message suggesting the nation’s top credit rating had been lowered.