Spain Bonds Fall on EU Divide Over Crisis as Bunds Rise

Spanish and Italian bonds fell, underperforming their euro-area peers, amid concern that European leaders won’t be able to resolve differences on a way to end the sovereign-debt crisis and boost growth.

Spanish two-year yields jumped by the most in a week as German Chancellor Angela Merkel said joint borrowing by euro-area governments would be counterproductive. German bunds rose as investors sought safer assets after billionaire investor George Soros said a failure by European leaders meeting this week to tackle the financial crisis could spell the demise of the euro. Belgian notes gained for a fourth day as the country sold securities due between 2017 and 2032.