Spanish Note Yields Climb From 8-Year Low Amid Fed Taper Concern
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Spain’s government bonds erased gains, with five-year yields climbing from the lowest since 2005, as investors assessed the prospect of the Federal Reserve reducing stimulus earlier than some economists predict.
Italian bonds also gave up gains as stocks declined, damping demand for higher-yielding assets. Germany’s two-year notes fell, pushing yields toward the highest since September, after an auction of the securities. The Fed will start slowing its $85 billion in monthly bond purchases at its meeting next week, according to 34 percent of economists surveyed Dec. 6 by Bloomberg, an increase from 17 percent on Nov. 8.