Spanish Bonds Advance as Cypriot Banks Reopen; German Bunds Drop
This article is for subscribers only.
Spanish and Italian bonds rose as Cypriot banks opened for the first time in almost two weeks with few signs of any capital flight after an international bailout.
German 10-year bund yields climbed from the lowest in almost eight months as the developments in Cyprus reduced demand for the region’s safest assets. The Cypriot Finance Ministry said controls on bank withdrawals and overseas transfers will be in force for seven days. Italian, Spanish and Portuguese bonds fell this week after the terms of financial support for the Mediterranean island nation included losses on some bondholders and depositors.