Italy’s Bonds Decline With Spain’s as Economic Recovery Falters

Italy’s 10-year government bonds fell for a second day as signs that the euro-area’s economic recovery is losing momentum damped demand for the region’s higher-yielding assets.

The Italian securities slumped to their first back-to-back drop in almost four weeks as a report showed the nation unexpectedly slipped into a recession. The yield on German 10-year bunds fell to a record after a report showed factory orders in Europe’s largest economy dropped the most in over 2 1/2 years, adding to evidence that tension with Russia over Ukraine is leaving its mark. Greek bonds had their longest stretch of declines since January.