European Bonds Climb on ECB Bets; Spanish Yields Drop to Record

European bonds advanced, with Spanish five- and 10-year yields dropping to records, as speculation the European Central Bank will introduce further stimulus next week boosted demand for fixed-income assets across the region.

Belgian 10-year yields also reached a record low and German five-year rates declined to the least in a year as a measure of euro-area money supply grew less in April than economists forecast. ECB officials are due to meet on June 5 to set monetary policy after President Mario Draghi said earlier this month that the Governing Council was “comfortable” taking measures to boost inflation in the euro area. Germany drew fewer bids than its maximum target at a 30-year debt sale.