Spain Deficit Woes Pardoned by Yield-Hungry Buyers

Spain’s bond rally shows no signs of abating, even after a report showing the government’s struggle to reorder public finances continues to threaten a recovery in the euro region’s fourth-largest economy.

“There’s no stopping the locomotive of appetite for Spanish bonds as long as global growth prospects and central bank accommodation remain favorable,” said Ciaran O’Hagan, head of European rates strategy at Societe Generale SA in Paris. “The government will hopefully get a better grip on the public deficit.”