Bunds Climb as Greek Crisis Escalates; Spain’s Bonds Drop

German government bonds climbed on haven demand after a weekend of turmoil, which saw Greece’s Prime Minister Alexis Tsipras announce a referendum on the nation’s bailout, raising the risk of an exit from the euro.

Greek 10-year yields jumped the most on record as the nation shut its banks and imposed capital controls in an announcement designed to avert the collapse of its financial system. Still there were few signs of outright panic in bond markets. Benchmark German 10-year bunds pared earlier gains, and while Spain’s bonds fell amid contagion concern, the declines were just the steepest since last month.