Spain’s Waning Reserve Fund Risks Undermining Bonds

Spain’s Waning Reserve Fund Risks Undermining Bonds

Angel Navarrete/Bloomberg

The Kio towers, the headquarters of Bankia SA in Madrid. Spanish banks, which had been using emergency European Central Bank loans to increase their holdings of national debt, lowered their share to 28.7 percent of bonds in May from 29.6 percent the month before.