Spanish Notes Fall as Costs Rise at Auction; Belgian Bonds Slide
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Spain’s bonds declined, pushing two-year yields toward the highest since 2000, as financing costs surged at bill auctions today amid concern the new government will struggle to rein in the nation’s debt levels.
The country’s 10-year securities dropped for a second day after Maria Dolores de Cospedal, deputy leader of the People’s Party that won the Nov. 20 general election, said Spain needs a euro-region accord to “save and guarantee” its solvency. Belgian 10-year yields reached the highest in nine years after coalition talks were suspended. Italian, French and Austrian debt underperformed benchmark German bunds amid concern the region’s debt crisis is spreading.