Bonds Show Greece Risks Persist on Path Set for Bailout Accord

After surging on news Greece had agreed a bailout, and then tumbling amid concern it would struggle to implement the necessary reforms, Italian and Spanish government bonds settled into an afternoon of moderate gains as traders weighed the euro-zone future of the bloc’s most-indebted member.

“Markets are cautious on potholes that might arise,” said John Davies, an interest-rate strategist at Standard Chartered Plc in London. “This is almost the first concrete step on quite a long road-map toward resolving this crisis. Investors are being wary of getting too far ahead of themselves.”