Italy, Spain Bonds Slump as Crisis Punctures Demand; Bunds Jump
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Italy’s bond yields surged to a four-month high as the nation missed its maximum target for sales of five- and 10-year securities, stoking concern that Europe’s financial woes are denting investor appetite for the debt.
Germany’s two-year yield reached zero for the first time. Five-, 10- and 30-year German bond yields fell to records as economic confidence in the euro area declined more than analysts forecast in May to the lowest in 2 1/2 years. Spanish bonds slumped, driving five-year yields to more than 6 percent for the first time since November, after Bank of Spain Governor Miguel Angel Fernandez Ordonez quit before his term expired amid criticism over the nationalization of Bankia group.