Spanish Yield Reaches Euro-Era Record on Regional Concern

Spain’s bonds slumped, with 10-year yields rising to a euro-era high, on speculation more regions will follow Valencia in asking for financial aid, increasing concern the country will need a sovereign bailout.

Germany’s bonds outperformed their euro-area peers, with two- and five-year yields reaching record lows, as Der Spiegel magazine reported the International Monetary Fund will stop paying rescue funds to Greece, citing unidentified European Union officials. Italy’s 10-year yield climbed to a six-month high and Greek bonds tumbled. German 30-year bunds are forming a bubble, according to Carl Weinberg, founder and chief economist of High Frequency Economics.