Spanish Bonds Advance on Speculation ECB to Resume Bond Buying

Spain’s government bonds rose for a fourth day on speculation euro-region policy makers will resume purchases of so-called peripheral debt to help contain surging borrowing costs and ease the debt crisis.

German two-year yields dropped to a record after a report showed euro-area confidence worsened in July, underpinning demand for safer assets. Italian bonds fell as the nation sold 5.48 billion euros ($6.71 billion) of notes. European Central Bank President Mario Draghi, who last week pledged to do whatever it takes to preserve the euro, is trying to build consensus for a plan to contain borrowing costs in Spain and Italy before policy makers meet on Aug. 2.