French, Italian Bonds Rise on Debt Optimism; Spanish Notes Sink
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Italian government bonds climbed after the European Central Bank was said to buy the securities and German Chancellor Angela Merkel called for political action to stem the debt crisis.
Ten-year Italian yields fell a second day as new leader Mario Monti pledged urgent action to curb the nation’s deficit. French bonds rallied after the nation sold close to the maximum amount on offer at an auction of notes. Spanish bonds sank, driving 10-year yields to the highest since before the euro was introduced in 1999, as borrowing costs climbed to the most in at least seven years at an auction of securities.