Spanish Yield Exceeds 7% as Bunds Jump After Draghi Disappoints
This article is for subscribers only.
Spanish and Italian bonds slid as Italy’s Prime Minister said the nation will not ask the European rescue fund to buy its bonds and as the region’s central bank failed to persuade investors it can stem the debt crisis.
German government bonds jumped and Spanish 10-year yields climbed over the 7 percent level that triggered bailouts of Greece, Ireland and Portugal. European Central Bank President Mario Draghi signaled the ECB intends to join with governments to purchase debt to bring down borrowing costs. German, Dutch, and Finnish two-year yields dropped to records as investors favored safer assets.