Spanish Bonds Surge With Italy as Moody’s Rating Spurs Optimism
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Spain’s government bonds advanced, pushing 10-year borrowing costs to the lowest in more than six months, after Moody’s Investors Service said it would keep the nation’s credit rating at investment grade.
Italian and Portuguese securities also rallied amid optimism the euro region is making progress to contain the debt crisis. Moody’s cited a reduction in the risk of Spain losing market access because of the European Central Bank’s willingness to buy the nation’s bonds. German 10-year bunds declined for a third day while two-year notes slipped after the nation sold 4.19 billion euros ($5.5 billion) of the securities.