Spanish Bonds Rise on Rescue Fund Debt-Buying Speculation

Spanish government bonds advanced for a third day on speculation euro-area leaders will deploy their bailout facilities to buy sovereign debt.

Spain’s five-year yields headed for their biggest three-day drop since January as the nation sold more securities than planned at an auction. Spanish banks need as much as 62 billion euros ($78 billion) of capital, according to a private-sector report published today in Madrid. German bunds rose for the first time in three days after a report showed euro-area services and manufacturing contracted for a fifth month in June.