Spain’s Bond Yield Reaches Euro Record After Downgrade

Spain’s bonds fell, with 10-year yields rising to a euro-era record, after Moody’s Investors Service cut the nation’s credit rating, citing its rising debt burden and weakening economy.

Spain’s securities extended this week’s decline after the nation requested as much as 100 billion euros ($126 billion)of aid for its banks last weekend and after Prime Minister Mariano Rajoy said he would “battle” the European Central Bank for cheap loans to avoid a sovereign bailout. Italy’s bonds rose after the nation raised its maximum target at a sale of 4.5 billion euros at an auction even as its borrowing costs surged.