Spanish Bonds Advance on Greek Deal; Bunds Gain on Fiscal Cliff

Spain’s bonds rose this week, with yields falling the most in almost three months, as an agreement by euro-area ministers to ease the terms of aid to Greece boosted demand for the debt of so-called peripheral nations.

Italy’s government securities gained for a third week as signs the region’s financial crisis is easing pushed down borrowing costs at an auction. Greek bonds rose as the ministers cleared the country to receive a 34.4 billion euros ($44.5 billion) of aid in December. German bunds rallied as speculation U.S. lawmakers will fail to reach agreement on avoiding the fiscal cliff of tax increases and spending cuts boosted demand for the region’s safest assets.