Greek Bonds Slide on Aid Delay; Italian Debt Falls on Moody’s

Greek 10-year government bonds led declines by securities from Europe’s most indebted nations after governments failed to agree on releasing a loan payment, fueling speculation the country may default.

The extra yield investors demand to hold Italian debt instead of benchmark German bunds widened after Moody’s Investors Service said the Mediterranean nation’s credit ratings may be cut. German bonds pared an earlier gain that pushed the 10-year yield to within one basis point of the lowest in more than five months, as euro-area ministers put off deciding whether to give Greece the full 12 billion euros ($17.1 billion) promised for July.