Italian, Spanish Bonds Decline, Widening Yield Spread to Bunds
Italian and Spanish government bonds opened lower, increasing the additional yield investors demand to hold the securities instead of benchmark German bunds.
The yield on Italy’s 10-year bond rose six basis points to 5.51 percent at 7:45 a.m. London time. That pushed the yield spread to bunds 10 basis points wider to 3.81 percentage points. It reached 388 basis points, the most since Feb. 16.
Spain’s 10-year bond yield also increased five basis points, to 5.80 percent, with the spread to bunds widening to as much as 4.12 percentage points, the most since Nov. 30.
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