Italy’s 10-Year Government Bonds Advance After Auction

Italy’s government bonds rose, pushing 10-year yields down from the highest level in three months, after demand increased at the nation’s first debt auction since inconclusive election results.

Benchmark securities trimmed their first monthly decline since July as the Rome-based Treasury sold 6.5 billion euros ($8.51 billion) of five- and 10-year bonds, matching its target. Spanish and Portuguese bonds also gained as a euro-area report showed economic confidence increased in February, adding to optimism the debt crisis can be contained. German bunds were little changed after 10-year yields dropped to the lowest level in eight weeks.