U.S. Hedge Funds Buy Spanish Sovereign Bonds, Sunday Times Says

U.S. hedge funds, encouraged by the European Central Bank’s pledge to preserve the euro, have been buying Spanish government bonds, the Sunday Times said, citing unidentified debt traders.

Foreign investors bought an estimated 25 percent of the bonds the government sold in September, the newspaper said. Foreign investors have sold about 80 billion euros ($104 billion) of Spanish bonds in the past year, the newspaper said.

To contact the reporter on this story: John Glover in London at johnglover@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net