French Yields Drop Most in 20 Years; Spain, Italy Bonds Advance

French and Spanish bonds advanced, leading gains in euro-region debt, as optimism regional leaders are moving closer to containing the debt crisis boosted demand for higher-yielding government securities.

France’s 10-year yields fell the most since 1991 as the nation sold 4.3 billion euros ($5.79 billion) of bonds due between 2017 and 2041. Spanish notes rose for a fourth day as it auctioned 3.75 billion euros of securities, the maximum target. Italy’s 10-year yields fell below 7 percent for the first time in a week as European Central Bank President Mario Draghi signaled the ECB may do more to fight the crisis as long as governments push the euro area toward a fiscal union.