Spanish, Italian Government Bonds Drop, Widening Spread to Bunds

Spanish and Italian government bonds declined, increasing the additional yield investors demand to hold the securities instead of benchmark German bunds.

The yield on 10-year Spanish securities increased five basis points to 6.25 percent at 8:46 a.m. London time, driving the rate spread with bunds six basis points wider to 4.88 percentage points.

Italy’s 10-year yield climbed four basis points to 5.71 percent. The yield gap to bunds increased five basis points to 4.34 percentage point.

To contact the reporter on this story: Paul Dobson in London at pdobson2@bloomberg.net

To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net